Those who made profit by selling land in capital boom filing for licences
Several land owners who earned money by selling their lands in capital boom are now investing in liquor business.
GUNTUR: Some of the neo-rich in the Amaravati capital region villages, who earned huge amounts by selling land at high prices, are showing interest to enter the liquor business. The Excise department has called for applications for 307 liquor shops in Guntur district. There was poor response in the beginning but nearly 1,000 applications were submitted on Friday.
The total number has reached 2,000 so far. The department expects another 1,000 applications before the deadline. Last year no one showed any interest for the 50 liquor shops licences in Mangalagiri and Guntur Excise divisions. However, it has now become a hot property due to the new capital coming up nearby. Land owners benefited hugely with the land price shooting up to Rs 1.75 crore per acre in some areas, where it was about Rs 40 lakh per acre.
Landlords with land in double digits sold half the land and gave the remaining land to Amaravati under the land pooling scheme to the Capital Region Development Authority. One of these persons on condition of anonymity said that they used to earn up to Rs 5 lakh per annum due to continuous cultivation of crops in the unique multi-crop lands.
The liquor shop business appears attractive to them, he said. He added that nearly 50 former land owners are showing interest in starting liquor shops. People who paid income-tax for the past two years are eligible to apply for a liquor shop licence, and this new norm has barred many people.
Therefore, the neo rich are filing applications through their friends and relatives who are income tax payees by offering them a suitable partnership. Liquor trader M. Srinivasulu Reddy said the licence fee for a liquor shop is Rs 30 lakh to Rs 65 lakh which is easily affordable to these neo-rich people who got crores of rupees by selling lands in the capital region.
He added that these neo-rich class is further planning to get partnerships in multiple shops if they fails to get liquor shops in the lottery system. With the liquor shops coming up, the neo-rich are getting a chance to set up new business venture.
( Source : deccan chronicle )
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