Election cash call puts pressure on development and real estate
The real estate companies are transferring funds from housing and other projects towards election campaign contributions. As compared to other sectors the developers are depending on connection with the government to acquire land or win contracts. If the developers support the campaign of the winning party the return is huge for the developers.
Mr. Santhosh Kumar, Chief Executive Officer of operations at Jones Lang LaSalle India, says that a lot of money is transferred from the real estate sector in to the elections; how that money is utilized is unaccounted. He further says that the developers have to support political candidates to acquire good future opportunities. Whichever party comes in to power, the developers have to make good relations with them.
As per the study, the amount of cement consumption gets decreased nearly 12 percent during elections. The Anti-corruption groups have also concluded that the poll funding in country is so dirty but the political parties are expected to spend nearly 300 billion rupees for the five-week election starting on April 7.
A report concluded that nearly the one- sixth of the funding to the political parties during the period of 2004-05 and 2011-12, comes from the real estate sector, oil and power firms.
Source: Deccan Chronicle
Election 2014, Election campaign fund, India, India election campaign fund, Jones Lang LaSalle, Lok Sabha elections, Political parties, Power firms, Real estate in India, Realty News, Santhosh Kumar
