The roots of this proliferating nexus go back to government regulations like the Urban Land Ceiling Act and other arbitrary amendments in land use policy. From the benefit of hindsight, these indeed were clever sleights of hand by the politician, who charted a new course in money-making. He has succeeded. Consider this. Once urban land ceiling came into force, it meant that property could not be developed or sold easily. Couple it with excessive urbanisation, with more people migrating to towns and cities. The land mafia got into the act as slums began to mushroom and speculation and satta on land went up dramatically. The politician realised the land's worth but needed the bureaucrats to break the already-bended rules. And thus, this unholy nexus was born. Gujarat's story runs on similar lines. As lifestyles improved and more money poured in, people went for individual ownerships in Ahmedabad, Vadodara, Surat, Rajkot and other cities. Since land was limited, vertical expansion, or high-rises became popular. Until the January 26 quake, these were easily the most favoured way to live. In Gujarat's case, add another factor: huge remittances from nris, the Shahs and Patels. Most of them wanted a home in their native town or village and money was no problem. Residential investments were not the only ones in demand. Ahmedabad and Vadodara, for instance, have more resorts than schools and colleges. The building industry expanded like no other and was truly regarded blue chip.
No particular qualification is mandatory for builders—you may need a formal education to become a stockbroker—except a strong will to survive. In Gujarat, even professionals started investing in real estate—doctors, solicitors, lawyers all wanted to put their money in properties which would fetch high returns. Builders, in cahoots with politicians and officials, gave them that golden opportunity.
In Gujarat, government officials at all levels dealing with urban bodies and municipal corporations have made a killing. Witness the periodic anti-corruption raids conducted on civic authorities and it comes as no surprise to find crores stashed away with even petty officials. Land records were fudged at the lower level, land use policy tampered with and municipal bye-laws changed. Once land use was changed, it was then only a question of how to fit it in with the builders' requirement. The politician ensured that with the help of pliable officials, who also gained. Those who did not play along were promptly shut out in the cold.
Add to it the economics of a situation where the demand far outstripped supply. An average investor, given the level of speculation and spiralling prices, didn't care much about where he or she got the house, as long as possession was obtained.Town planners and civic authorities ensured that preliminaries were waived, architects approved plans without raising too many questions, and as for other rules like checking the soil quality, they were not even in the reckoning.
Even after the tragedy, there is no let-up in speculation. Check the meteoric rise in cement prices since that fateful morning. The government has lifted the ban on receiving foreign aid. So who is getting the money? Where is the aid coming from? What are the strings attached? What are its repercussions? It is difficult to believe that the money coming into Gujarat today would not go to the same builders and contractors for 'rebuilding'. Another thing specific to Gujarat—the kind of money religious leaders and mahants are now putting in the name of social service and the communal overtones it has acquired has dangerous portents. The quake, after all, has affected everyone.
(The author is with the Gujarat-based Sarvodaya Trust.)
