Largest realty scam in Telangana worth Rs 15,000 crore; Google, Microsoft also affected
BENGALURU|HYDERABAD:
Major global and domestic companies in Hyderabad
are jittery about the value of their real estate holding after the Telangana
government initiated a series of legal cases questioning the legitimacy
of the ownership of land holdings, both private and government
auctioned.
The latest episode that triggered a fresh wave of panic among investors is the largest land scam in Telangana involving hundreds of acres valued at atleast Rs 15,000 crore. After the opposition raised a hue and cry, the government was forced to announce termination of suspicious land registrations.
"It's time for the government to rethink and examine all the existing procedures and make clear titled land banks available for investors," said Veera Babu, Cushman & Wakefield's managing director. The latest land scam comes at a time Hyderabad's real estate market was beginning to look up after several years and for the first time after Telangana state was formed in June 2014. Hyderabad has been allotted to Telangana, forcing Andhra Pradesh to find a new capital.
"This would certainly affect the investment flowing into the (Telangana) market in the short term. The land scam has dealt a blow to this upswing and will create uncertainties in the minds of investors and buyersoccupiers alike," said Shrinivas Rao, chief executive officer (Asia Pacific) of global property consultant Vestian Global Work Place Services.
Investors who were stung by messy land titles in Hyderabad include Google, Microsoft, Tishman Speyer, Shapoorji Pallonji, DLF, Lanco, Puravankara, Sattva Salarpuria and My Home group. Even procuring land from the government is no guarantee. "We are only acquiring land from government or corporate houses as they are clear titles," said Biajy Agarwal, MD, Salarpuria Sattva Group.
In the latest land scam, the accused colluded with land registration officials to corner hundreds of acres of contentious land parcels in Hyderabad's Miyapur and a few other localities."Hyderabad is one of the worst property market in terms of land records.There are scores of dubious land titles in the city," said the owner of a local brokerage firm in Hyderabad.
The latest episode that triggered a fresh wave of panic among investors is the largest land scam in Telangana involving hundreds of acres valued at atleast Rs 15,000 crore. After the opposition raised a hue and cry, the government was forced to announce termination of suspicious land registrations.
"It's time for the government to rethink and examine all the existing procedures and make clear titled land banks available for investors," said Veera Babu, Cushman & Wakefield's managing director. The latest land scam comes at a time Hyderabad's real estate market was beginning to look up after several years and for the first time after Telangana state was formed in June 2014. Hyderabad has been allotted to Telangana, forcing Andhra Pradesh to find a new capital.
"This would certainly affect the investment flowing into the (Telangana) market in the short term. The land scam has dealt a blow to this upswing and will create uncertainties in the minds of investors and buyersoccupiers alike," said Shrinivas Rao, chief executive officer (Asia Pacific) of global property consultant Vestian Global Work Place Services.
Investors who were stung by messy land titles in Hyderabad include Google, Microsoft, Tishman Speyer, Shapoorji Pallonji, DLF, Lanco, Puravankara, Sattva Salarpuria and My Home group. Even procuring land from the government is no guarantee. "We are only acquiring land from government or corporate houses as they are clear titles," said Biajy Agarwal, MD, Salarpuria Sattva Group.
In the latest land scam, the accused colluded with land registration officials to corner hundreds of acres of contentious land parcels in Hyderabad's Miyapur and a few other localities."Hyderabad is one of the worst property market in terms of land records.There are scores of dubious land titles in the city," said the owner of a local brokerage firm in Hyderabad.
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