Rahul Mehta Gandhinagar LsCandidate

A VALID question against competitive buyout law-draft ----- we at Right to Recall Group has porposed following law-draft to reduce black rupee in India --- if A sells plot to B for say Rs 1 crore, and if within 30 days, C comes and offers 15% or more higher, then B will get Rs 1,10 crore and C will get the plot. But again, if some D comes and offers 15% more than what C offered, then C will get 10% on top of what C had offered and D will get the plot.
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TWO valid questions are :
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Question-1 : rich people can develop a nexus to corner much of the sold land especially if land is at a prime location. So, all land at prime location will go to the influential people."
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ANSWER : Rich people dont have money to buy even 1% of prime and if such a law were come. Consider Mumbai. . its area is some 624 sqkm = 624 crore sqft, Say 2% of Mumbai is prime area.Then that would 12 crore sqft. Since it is prime area, the price will be Rs 30000 sqft at least.. So price of that prime area would be 12 crore sqft * rs 30000 sqft = Rs 360,000 crore It is 3% of whole nation's annual GDP. It is some 30% of taxes Central govt collects and some 12% of taxes ALL central, State. District, City govts collects !! And we are talking of prime land of mumbai ONLY. If we take prime land of mumbai, delhi, kolkata, chennal, ahmedabad, then it will be way way more than LIQUID cash elitemen have to offer for such buyouts.
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IOW, "elitemen will manage to buy all land and leave nothing for others" isint viable at all.
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Question-2 : A and B are friends. And A has plot worth Rs 10 crore and B is poor. Now A wants to help B by giving that plot for free or at lesser value say Rs 5 crore. Then competitive sale will stop that from happening
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ANSWER: The proposed law-draft will NOT stop A from giving that plot at all. At the time of gift, A will have to set the price, and A or B will need to pay gift tax of 30% which is also applicable today. And if the price A sets is below market price, then ONLY A and B will lose the plot. OR, A can give rs 10 crore loan to buy plot, and later B can repay the loan with interest. The tax will be ONLY on interest and not on loan repayment. IOW, as long as FULL market value is used for transactions, the law doesnt stop or obstruct the friendly transactions.
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