Telangana reality scam: Google, Microsoft duped in Rs 15,000 crore . In Hyderabad, major global and domestic companies are nervous about the value of their real estate holding after the Telangana government initiated a series of legal cases. The latest episode that triggered a fresh wave of panic among investors is the largest land scam in Telangana involving hundreds of acres valued at atleast Rs 15,000 crore. After the opposition raised a hue and cry, the government was forced to announce termination of suspicious land registrations. “It’s time for the government to rethink and examine all the existing procedures and make clear titled land banks available for investors,” said Veera Babu, Cushman & Wakefield’s managing director. The latest land scam comes at a time Hyderabad’s real estate market was beginning to look up after several years and for the first time after Telangana state was formed in June 2014. Hyderabad has been allotted to Telangana, forcing Andhra Pradesh to find a new capital.“This would certainly affect the investment flowing into the (Telangana) market in the short term. The land scam has dealt a blow to this upswing and will create uncertainties in the minds of investors and buyersoccupiers alike,” said Shrinivas Rao, chief executive officer (Asia Pacific) of global property consultant Vestian Global Work Place Services.
Investors who were stung by messy land titles in Hyderabad include Google, Microsoft, Tishman Speyer, Shapoorji Pallonji, DLF, Lanco, Puravankara, Sattva Salarpuria and My Home group. Even procuring land from the government is no guarantee. “We are only acquiring land from government or corporate houses as they are clear titles,” said Biajy Agarwal, MD, Salarpuria Sattva Group.The Opposition Congress, Telugu Desam and BJP allege that government lands worth at least Rs 1lakh crore in Hyderabad were encroached upon during the past three years of TRS rule and accused the government of facilitating offenders by not retrieving such land. “There is clear land available in Shamshabad and Rajendra Nagar. Government needs to make sure that the in frastructure is available.There are many private builders looking to expand in Hyderabad,” said Ram Chandnani, MD, transaction, CBRE.
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