Stop Allotting, Start Auctioning
Whenever the government tries to allot something, there is always a fraud or a scam. Why? Because, it always allots the property (includes real estate, licence etc) at a price lower than the market value. As a result, politicians are tempted to take money to allot or they allot the property to their freinds and family members. Lets me give you some examples.
1. Telecom licences were allotted to Unitech and other allottees made a bundle out of it. A number of agencies are enquiring into the matter but ultimately everything will fizzle out. I have written extensively on the subject in my management blog.
2. Why has the DDA scam happened? Simply because the DDA flats were being allotted at lower than market value. If they were auctioned, nobody would have made the effort to commit forgery. There would also be no temptation to do so.
3. A number of questions were raised when it was discovered that Justice Sabharwal’s sons were allotted plots in Noida. If the plots were auctioned, nobody could have raised questions and the authorities at that paticular time would not have been able to favour anyone even if they wanted to.
4. Even Andhra Pradesh government has allotted land and contracts to Satyam promoter Raju’s company Maytas. Delhi Metro chief had earlier warned that a scam was waiting to happen and it has happened.
Now I could go on and on but I think from the above it is clear that one of the method to improve government governance and bring about transparency in all transaction is stop allotting and start auctioning. By the way, this action would not require change in any law. It would be simple to implement provided the current politicians are willing to do so.
This is what I would aim for when elected.
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Hi!
It was in the newspapers today that YSR, CM=Andhra Pradesh allotted 50 acres of land to Satyam at Rs. 10 lakhs an acre whereas the market price is Rs. 5 crores an acre. The government is expected to lose Rs. 195 crores in this deal. This is just an example of where land is allotted on the whims and fancy of the politicians. The money lost in this deal could have been used to build infrastructure but is going to land up in the pockets of rich businessmen and politicians.
The other problem connected with such transaction is the creation of black money or parallel economy. It is obvious that such practices need to be completely stopped in the interest of the nation and its citizen owners.
This incident also suggests whop the owner of this country is. Politicians own the land as they can allot it to anyone they want and at prices which are nowhere close to the market price of the land.
So I say again, lets “stop allotting and start auctioning.”
avinash narula
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Jagpal Reply:
January 31st, 2009 at 12:07 am
Yes You are right. this increase black money problem but I think govt. does this to make it easy for corporate to implement there industrial plan so they can generate more jobs. Intention is always right but people take advantage of it.
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