In an interview to Tehelka, Adi Godrej made the following startling statement:
Why should it (compensation) run out soon? It can be invested. It can be made into a much bigger value than land. Land has the lowest appreciation of all assets. The best investments are in stocks. Somebody should advise them(farmers) to invest it in mutual funds so their wealth will rise faster.
Now this is fairly amusing coming from a man who is one of the biggest landlords in Mumbai.The Godrej group fought tooth and nail against the Maharashtra Govt in various courts to prevent the Govt from acquiring its lands under the Urban Land Ceiling Act.
At that time, Adi Godrej did not take the money and invest in stocks or mutual funds.
Along with hypocrisy, what is also appalling is the sheer financial illiteracy displayed by Adi Godrej.Land has given one of the best returns in India…much better than most stocks.
But not to worry.Indian farmers have more sense than these captains of industry.Its unlikely any farmer will heed his advice of selling their land and investing in stocks.
The only people who should worry are the investors in Godrej stocks !!