|  |  |  |  |  |  | 

Business Exclusive Headlines India National News

Andhra capital puts realtors in a fix

Vijayawada,Oct 7 ():Andhra’s capital city flip-flop has not only put farmers in a quandary but real estate agents are also in a fix.

As news spread of Andhra’s new capital city, real estate agents executed agreements with landowners. Now as some areas have been dropped by the Andhra panel, real estate agents are demanding money back that they gave as advance.

In newly added areas, land owners are going back on the agreements that they signed, demanding more price. As news comes that government will acquire the lands if they are not given under pooling system, realtors now want to take back their money as Andhra government will pay only the notified price and not the market price.

The affected areas are Hanuman Junction, Agripali and Nuzvid which were earlier to be part of Andhra capital but now have been rejected. Here buyers are asking for their advance money back. Kanchikacharla which was not in race for the Andhra capital has now been included and here land owners are backing out of agreements, demanding more money as prices have shot up.

Realtors draw out agreements with owners, give them an advance, have a six month period to finish the deal and register the sale deed. As speculation fuelled by TD politicians started, many executed agreements expecting a windfall. Farmers who took the money invested in land which is out of the capital city plan.

Opposition has said that it will not permit the government to acquire any farmers’ lands and wants to use public land instead. The zero cost capital city too has come in for criticism.

The real estate council points out that under the pooling system, the Government would need two lakh acres to build a 25000 acre capital city. The increase in land size would virtually wipe out fertile land in the region. The government need not share land with developers and owners but instead acquire it paying money, then it will need less land. This will require funds.

In the acquisition method, the land owner does not get 40% of the property back in developed state. The council said that instead of sharing property at 400 yards per acre with the builder, the government should give a contract.