Corruption in the central government is gone. There is a tough message out from the Prime Minister’s Office that graft will not be tolerated.
There is an overall drive against black money with various schemes being tried to put a plug on it.
The same hard stand has been taken with bank loans and one place to start has been the process of selection of public sector bank chiefs.
A member of the committee who would interview candidates for public sector bank chairmen told me that after 2014, they stopped getting calls from the power centre on who to hire. The rate used to be fixed, he said, we were just told to pick the name told to us.
Who’d pay? Firms that would then benefit from easy loans and terms. Those calls have stopped.
The hardening stance of the state on black money shows up in the prices of real estate.
Real estate has been the sump of black money in India and the politician-builder-land mafia nexus had raised prices to a level that was beyond any economic logic.
People who bought their Rs.8 crore luxury floors in Gurgaon are unable to find a buyer at half the price.
The winter for real estate is going to last a long time—so if you are still holding on to an investment thinking it will recover, plan on bequests rather than profits in the near future-wrote Monika Halan