The state of Jammu and Kashmir enjoys many privileges under Article 370, one of which is that an individual not domiciled in the state cannot buy property there. Much is made about this but states like Arunachal Pradesh, Sikkim and Himachal Pradesh too have similar restrictions. This is going to change. Himachal Pradesh will soon allow real estate developers to invest in commercial, industrial and residential property, making it possible for those outside the state to sell and buy property. Today, it’s easier for an Indian to buy property in Dubai, Switzerland, United Kingdom or Australia than to buy in the above mentioned Indian states. Of course, properties were being bought in these restricted states by entering into a partnership with locals. The law was circumvented anyway, legally. So Himachal has decided to do away with the archaic restriction. With a new law in place, property deals will be transparent and command a higher price.
Originally, the restrictions were based on noble intents of protecting the socio-economic characters of the states and not allowing outsiders to dispossess locals. But economics seems to have won the day. Himachal is aware that locals do not have the financial wherewithal to fully exploit the tourist potential the state has. The lack of development of tourism and consequently the lack of job opportunities forced a young workforce to seek employment elsewhere. The state government reasons that opening up the real estate market will bring in huge amounts of investment and pump in money into the state economy. With property prices shooting through the roof all over India and the state being an acknowledged tourist and holiday destination, Himachalis can expect to sell real estate at prices they could never imagine. Of course, development has to be tempered by environmental protection but these laws could be tightened further. Developers do realize the potential of selling holiday homes to an ever expanding list of billionaires. With rising incomes, the universe of property investors too is growing.
But the environmentalists are up in arms. Already 53 builders and developers have thrown in their hats with the state authority to develop properties. Development rules, the environmentalists claim, have a strange habit of leaning towards circumvention. As evidence, they cite Shimla, the charming hill station of yesteryears, now criss-crossed with concrete in all its inelegance. Unplanned development, flouted rules, environmental degradation and the rapacity of developers, say the critics, will prove disastrous to the state and kill the goose that lays the golden egg of one of the most scenic and ecologically rich region.
One can’t paint all developers with a single brush. But will they rise up to the challenge and prove that for once the environmentalists are wrong?
No comments:
Post a Comment