Real Estate Scam

The Real Estate scam that has come to the notice of public after CBI made some high profile arrests, asks for a debate.

In one of my blogs—“Games Builders Play”, I have mentioned that we need a regulator for the real estate market. Is it not surprising that we have regulators for Banking, Mutual Funds, Stock markets and Insurance but no regulator for Real Estate market?

While Real Estate is something where a person puts in his life’s savings and is typically the largest investment for most of us. As in a MF or Insurance policy or even in stock market you can start investing with as little as Rs. 500, but for investing in real estate which in majority of the cases is also the primary dream home one needs to shell out a few lakh rupees and take a mortgage that one will be paying till one retirement years.

Any ways one unique thing about this scam is that it was announced by CBI and was not sniffed out by media hounds. This tells us a few things:

• Politicians are not involved in this at least to begin with. Or the politicians did not received there pound of flesh so decided to teach lesson to the people involve as to how dare they have the ***** to do a scam on there own.

• The announcement was done after market hours which means it was a planned to have a minimum impact on the stock market. ( It is a different thing that some people seemed to know it before hand as LIC Housing finance stock tanked around 18% that day)

• If the government is worried about the stock market tanking it means the government wants the stock market to go up.

• But don’t feel all “lovey dovey” about the government that it wants the stock market to go up. There is a reason why MMS and his pack of pro-reform poodles want the market to go up, and the reason is simple the government wants to raise close to 50000 Cr Rupees from stock market by bringing IPOs and FPOs of government owned companies. And the amount can not be raised if the market tanks.

• So by deductive logic stock markets are not going to tank too much till the time the government has met its target of raising the monies from the stock market. What will happen after that is anybody’s guess.

But till then my guess it markets will not tank beyond a certain limit as yours and mine hard earned money in LIC and SBI will be used to keep the market stable. The worst part is we don’t have the right to complain as we elected the government but guess what next one is also going to be same. As they say “ Jaise Saapraaj, vaise hee Naagraaj” i.e. The king of snakes is same as king of cobras!

Thanks for reading, would love to hear from you.