Sunday, May 1, 2011

Land as a security in Kerala!


We visited several lands in Theni district in our year long search. Theni borders Kerala and Tamil Nadu and is a very picturesque area and is famous for a variety of big and small orchards, plantations and farms. We came across a 150 acre farm land about 15 km from the town. The area was absolutely phenomenal. It was a flat land (Theni can get mountainous in certain areas) with mountains on the back end and overlooking the mountains towards Kerala. There were small habitations on top of the mountain with smoke billowing from the roof tops, along with nice crisp weather with a little chill in the air – it was very picturesque. Having studied and grown up in Dehradun, it was like looking at Mussoorie, right here in Tamil Nadu. 

Overall, the land was good and we expressed interest to our broker (we will call him D). I asked D to set up a meeting with the owner to discuss prices. After a day, D got back to me stating that the owner is in Kerala and would like to meet me in Cochin. The drive from Chennai to Theni was about 8 hours  and there was no way I was going to drive another 8 hours to Cochin. D would not disclose the owner’s number since he felt he may be bypassed from the transaction. Later, he divulged that there were problems in about 15 acres of the land. The owner’s  partner had sold part of the land without his consent. D was sure that things would be sorted out as the owner was a political heavyweight in Kerala and would get things right after I bought the land. In essence, he would “ make things right” after I paid the owner. I suggested he should use his political clout to make things right before the transaction occurred, however he persisted that the land  did not have any major issue. It was getting mildly frustrating that D would present discoveries periodically but would not let me interact directly with the owner. 

After getting an earful, D got back to me after several days that the owner would call me. So, I talk to “Mr political Heavyweight from Kerala” and inquire about the status of the land. He sings the same tune about his partner cheating him and the case would be settled in 1-2 months. I offered waiting for 1-2 months, and then buying the land without any issues. He did not show interest in that offer and pressed on for immediate sale. The most fascinating business proposition of my life was yet to come. He offered to put a piece of land in Kerala apparently worth Rs 2 Crore as a security. Soon enough I realized that it was no point reasoning and I was wasting time with him. I politely disconnected the phone and that was the last time we ever spoke.

2 comments:

  1. rajan mathew-09825611425August 13, 2012 at 3:23 PM

    Sir, am presently looking for a bearen land of 10-20acres in TN prefer to close to Kerala with a water facility and for farming as well as green fodder cultivation for the future plan of diary farm in kerala. am looking for a land price between 1-2lac per acre only. is there any possibility to get such cheap price land within 50-100km radius from kerala - kumali border???

    i wonder how technical you are sound in agri field and your each actions supported by deep technical aspects ??? is it still profitable to do agri business in TN? and lastly how safe to have agri land in TN? after owing clear titled land is there any local domicile to outsiders ???

    ReplyDelete
    Replies
    1. I would not know of any lands in Kumli area. Profitability in agri is subjected to many variables, some of them you have control over and some you do not. So it is a very open ended question. A lot depends on your research and management as well. People from other states can own lands in TN, irrespective of their farming background.

      Delete