Thrusday, June 02, 2011

Realtors Have to Share 80% Profits with Farmers

Industry Supports Haryana Model

              The rural development ministry has proposed that farmers should get 80% of the profits from resale of land bought from them for development, much higher than that suggested by a Sonia Gandhi-led panel.
              “It is not a viable proposition for any developer. We will book losses if this happens. As a developer, we take all the risk of the development, including getting permissions and selling. We would rather get into the contracting business where profits will be better,” says Shiv Priya, executive director at Amrapali Group.
              Industry body Federation of Indian Chambers of Commerce and Industry (Ficci) too does not favour such a high limit.
              “An 80% might be too high… but as a principle, some amount of the profit should be shared. I cannot comment on the exact percentage, but companies should share the profits,” said Ficci Additional Director Chetan Bijesure.
              Experts say these proposals do not address the real issue.