{LONGTERMINVESTORS} The End Of Real Estate, Construction and Cement

The End Of Construction, Real Estate and Cement
All around our homes, and most parts of Delhi-new properties costing over Rs 10 crore are being built on a premise called Collaboration. The modus operandi is this-the Builder pays Rs 2 crore upfront to the existing owners, asks them to vacate the plot, demolishes the structure and rebuilds 5 floors on stilts and a basement over 2 years. Of these, he keeps 2 floors for himself ostensibly to defray the cost of construction and his profits. The existing landlords can split the Rs 2-3 crore and move into rented tenements. In most cases even the rent is paid by the builder.

The problems-this Rs upfront cash is now useless, it cannot be deposited in a bank or used for buying Gold. Second, the migrant labour mostly from Rajasthan now in-between crops has no place to live, a Aadhar or voter id or bank account. The contractor cannot pay such large sums of cash for steel, cement, bricks, fittings, woodwork, paint, marble or granite for walls or flooring and labour. The result all work at stand still. The land owner has no land, and cash he cannot use.

This is the result of demonetising currency-a very well thought out decision taken by the powers who have been elected by these same people and who have immense prosecutorial powers and means to raise cash. But these same people will not chase the builders or the people who have entered such cash deals-even though everyone knows this cash would be lying at home.

Only useless, third world nations debase, demonetise currency, carry out fake encounters and put extremely rich industrialists into prison. This is democracy for you.

--
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.