Centre Wants To Put In Place Well-Defined Property Rights
The Times of India (Chennai edition)
Mahendra Kumar Singh, New Delhi, August 31, 2009
India’s litigation-ridden property rights system might finally get a much-needed makeover, with the urban development ministry writing to state and local authorities to put in place a property title certification system to ensure conclusive title guarantees. The ministry also plans to organize a workshop for local officials to help chalk out an action plan.
This could revolutionise the land market and also have major implications for India’s economy. Celebrated economist Hernando de Soto has pointed out that capitalism truly succeeds only in countries with well-defined property rights. In developed countries, assets can be leveraged as collateral to take loans, which form the basis of entrepreneurship. But the lack of property rights in developing countries turns assets into ‘dead capital’.
It’s an argument that resonates in India, with property disputes being a bane for millions. The cult hit ‘Khosla ka Ghosla’ made the point humourously, but many people have suffered the same problem first-hand, and found nothing even remotely funny about it.
The Times of India (Chennai edition)
Mahendra Kumar Singh, New Delhi, August 31, 2009
India’s litigation-ridden property rights system might finally get a much-needed makeover, with the urban development ministry writing to state and local authorities to put in place a property title certification system to ensure conclusive title guarantees. The ministry also plans to organize a workshop for local officials to help chalk out an action plan.
This could revolutionise the land market and also have major implications for India’s economy. Celebrated economist Hernando de Soto has pointed out that capitalism truly succeeds only in countries with well-defined property rights. In developed countries, assets can be leveraged as collateral to take loans, which form the basis of entrepreneurship. But the lack of property rights in developing countries turns assets into ‘dead capital’.
It’s an argument that resonates in India, with property disputes being a bane for millions. The cult hit ‘Khosla ka Ghosla’ made the point humourously, but many people have suffered the same problem first-hand, and found nothing even remotely funny about it.
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