Realty shares jump as Lok Sabha passes Land Acquisition Bill
Stocks in real estate firms enjoyed notable gains in early morning trade on Friday after the Lok Sabha passed the controversial Land Acquisition Bill.
All major players, including DLF, Unitech, Peninsula Land, Anant Raj Industries, Indiabulls Real Estate, and Housing Development & Infrastructure Ltd. gained between 1 per cent and 6 per cent on the Bombay stock Exchange (BSE).
The Congress-led UPA government claims that the Land Acquisition Bill would accelerate the pace of industrial investments and economic growth by making the rules regarding land acquisition clearer.
But, the BJP-led Opposition criticized the government saying it cleared the Land Acquisition Bill and Food Security Bill to get votes in the next year's general elections.
Rajeev Gowda, Congress MP & professor at IIM, defend the Land Acquisition Bill as well as Food Security Bill saying, "They are not aimed at the elections. They are aimed that the economics of India's development is correct."
The newly-passed bill, which will replace a cluttered law enacted in the 19th century, aims to generate a foreseeable framework within which companies will be able to acquire land. In addition, the bill will take environmental and social factors into account, thus creating a more sensible value of business costs.