UTTAR Pradesh should have been the richest state in the country, riding on the boom in the real estate industry. Going by the barrage of text messages flooding mobiles, and the advertisements in newspapers, on TV and FM, the towns of UP – particularly Noida and Greater Noida – appear to be celebrating a round-the-year “property sale festival”. Yet, it is not so. According to government rates, the builder has to pay Rs 800-1500 per square foot – that too in 10 to 15 years’ time – depending on the size and location of the plot. The UP government gets 10 percent of the official rate upfront while the builder can pay the rest over a decade or so. The flip side is that the builder has to pay up Rs 11,000- 15,000 per square foot immediately as unofficial peripheral charges. This “unofficial” system also stipulates that 40 percent of the total deal has to be paid upfront and the remainder after the formal letter of allotment. Chief Minister Mayawati, the coloniser of UP, knows well how to play this game.Read more....
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