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Source: The post is based on an article “Supertech buildings’ demolition is a cinematic distraction from nexus between state and builders” published in The Indian Express on 31stAugust 2022.
Syllabus: GS 3 – Industries and industrial policies
Context: This article discusses about the nexus between state and private players in real estate and issues associated with urban areas.
The recently-demolished Supertech buildings in Noida shows the new relations between land, private real estate players and the state.
How the relationship between private companies and state has changed?
The market for land during the 20th century in NCR rose due to the actions of the government.
The Delhi Improvements Trust and the Delhi Development Authority had a land monopoly in the post-independence decades. Their actions led to huge inflation in land prices which prevented people from buying land in Delhi.
The government’s actions as a land monopolist in the Delhi region led private players to look beyond its boundaries.
Areas in Haryana and UP that bordered Delhi emerged as important nodes of urbanization.
The private house market started growing from the mid-1980s, with the availability of new sources of home loans and the expansion of the middle class.
Since the 1980s, a new urbanisation in India came up. It helped in forming new relationships between government mechanisms and private players. It helped in alteration of the approved lands.
As land values increased, it became profitable to convince government regulatory authorities to allow changes in the plans that were actually approved.
What are the issues arising out of the nexus between private players and state?
The approved plans can easily be altered and those plans are approved that benefit all parties.
This requires collaboration between different levels of government, politicians, real estate companies, land surveyors and brokers of different kinds.
The complex system of land measurement and planning procedures made it almost impossible to institute mechanisms of transparency.
There is an increase in the state-real estate complex where it is has become difficult to calculate where the state ends and private interests begin. This is the Indian version of the military-industrial complex.
What are the issues associated with the urban areas?
Demolishing can lead to depriving rights of urban dwellers and cruelty towards them.
The problems of urban areas require a different approach rather than simply demolishing.
There are many illegal lands or structures but with the time they become legalized.
The encroachment of forest lands by powerful people degrades the urban environment.
This all happens due to the peculiar relations between governments and land markets and sometimes our own participation in it.
