Increase in the circle rates will also increase the land cost in Uttarakhand

Apart from the massive liquor sale that gives the government of Uttarakhand an annual income of approximately Rs. 2300 crores, it’s also trying to generate revenue from other sources.

The government which pays a heavy interest on external borrowings has no alternative but to generate sufficient revenue from different other sources within the state, in order to not only pay the interest but also to further the development programs and also to run the state’s economy efficiently.

To generate this additional revenue the Uttarakhand BJP government led by Trivendra Singh Rawat is likely to enhance the circle rates of lands in the various cities and towns and its surroundings. This is to generate significant revenue in the process of buying and selling through earnings on stamp paper duties and from the registry of properties.

After Uttarakhand came into existence 19 years ago. Initially people hardly had any interest to invest in land or housing but after its formation the land sale has increased manifold in Uttarakhand particularly in the plain areas such as the capital Dehradun and its outskirts, Rishikesh, near Mussourie, Haridwar, Haldwani, in the outskirts of Mussourie, Dhanaltie, Udham Singh Nagar, Nainital’s outskirts and even at secluded hill areas. These investments are mostly with an aim to open resorts, hotels as well as for residential houses business establishments by businessmen and the middle class. There are also some large scale investments by the rich.

The real estate agents, land brokers, and colonizers are even selling agricultural lands on a square meter basis after purchasing large tracts of lands by cutting colonies, thus minting huge profits.

In almost all the townships and cities and their outskirts, people are thronging in large numbers to purchase properties and land.

The main reason behind this phenomena is shifting of major offices to Dehradun and other cities and the opening of new offices.

The bureaucracy, the business community as well as the employees of these establishments have therefore thronged the plains of Uttarakhand in multitude and have constructed houses for which they had earlier purchased lands.

An additional reason for investment in these hilly areas is it being environment-friendly and having pleasant people.  Therefore not only people from Uttarakhand but also people from Delhi and other metropolises including NRIs have invested money in Uttarakhand by purchasing lands. The idea is to benefit from an increase in the land rates after a few years and if need be to otherwise settle there after retirement.

The property business in Uttarakhand has prospered by leaps and bounds as the rich and affluent have purchased large tracts of land at throwaway prices a few years ago for establishing hotels, resorts, private hospitals, and other businesses which are now fetching them huge profits.

At several places in Haridwar, Rishikesh, and Dehradun huge multi-stories and hi-tech buildings have sprung up.

After this increase in the circle rates the cost of land at Dehradun, Haridwar, Rishikesh, Mussourie, Haldwani, Pithoragarh, Nainital’s outskirts, etc will further increase inflating the land cost. It would not be that easy for the new buyers to purchase whereas those who have already purchased these lands would reap handsome profits in the near future if they sell them.

There had been an investment of several hundred crores in Uttarakhand by land sharks and mafias. They’re bound to benefit from this move of the government if the circle rates move up by 25 to 35%.

While the state government will benefit from this move, the poor and the middle-class would be overburdened if they want to buy land for constructing houses says Congress leader of Uttarakhand Kishore Upadhyay. It’s an anti-poor and anti-middle-class decision says, Upadhyay.

On the other hand, Uttarakhand’s Agriculture minister Subodh Uniyal appreciates the government’s decision and has stated that an increase in the circle rates will result in the cost of the land to increase. The land and house owners and especially the farmers will benefit from high rates for their land.

Not only this but they will also be able to get higher amounts of loans from banks after an increase in the land rates adds Uniyal.