Real estate prices in Raigad have spiked due to a monopoly in the minor minerals market, increasing construction costs by 200 INR per sqft. A company linked to a Thane leader's family allegedly controls this market, pledging extra royalties to the government. This unethical practice prompted a wave of complaints, with no significant resolution yet. The local administration has pledged to revisit the issue as homebuyers await an intervention to counter this unchecked exploitation of resources.
Real estate in Raigad has become increasingly expensive due to a de facto monopoly in the minor minerals market, key components of the construction industry, procured from crusher units that pay government royalties.
This price surge, predominantly driven by the alleged monopolization of items like grits and soil-stone mixtures, has substantially affected the construction cost of residential properties. The fallout is a sharp increase of 200 INR per square foot in the selling price of flats, burdening prospective homebuyers.
Local real estate developer and legislative assembly member Parag Shah reportedly raised the issue with Deputy Chief Minister Devendra Fadnavis, but to no tangible effect. An assembly with the district collector of Raigad bore no fruit either. Insiders indicate a company, linked to the family of a Thane-based leader, monopolizes the business, pledging "additional royalties" to the government, fostering an unethical trade practice.
The monopolization issue emerged in May this year when this company entered the market via clandestine methods. Existing crusher units in the Panel and Uran areas are feeling the pressure, as they are forced to sell exclusively to this monopolistic company. In response to the skewed market dynamics, the steering committee of 'Loknete DB Patil 27 project affected villages' raised complaints to Chief Minister Eknath Shinde, Deputy CM Devendra Fadnavis, and other relevant authorities on May 15.
With the new monopolistic order, units are forced to bear an additional burden of 228 INR per metric tonne of grit and crushed sand, 353 INR for washed sand for construction, and 243 INR for plastering sand. Prices for these materials were significantly lower before the monopoly.
Prashant Patil, a Uran resident and NCP general secretary, claimed, "Strong-arm tactics and abuses of power have been used to support this company at all costs. Unseen agreements have been struck to exploit the minor minerals." In response to these claims, Raigad's collector, Yogesh Mhase, pledged, "I will revisit the alleged monopolistic business model, its effects on royalties, the real estate sector, and flat buyers."
In conclusion, the issue of monopolization and its implications on the real estate industry and consumers necessitate urgent government intervention. As flat prices continue to soar, potential homebuyers in Raigad eagerly anticipate a resolution that curbs the unchecked exploitation of minor minerals.
This story was earlier published in ET Realty.
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