Hyderabad: Farmers who turned millionaires overnight face prospect of losing lakhs

Bank officials at Vijayawada, Mangalagiri, Thullur and Guntur said that anxious farmers were doing the rounds at banks and asking officers how to deposit money without attracting penalty.

Written by Sreenivas Janyala | Hyderabad | Updated: November 14, 2016 2:32 pm
amaravati1 The exemption on capital gains tax for Amaravati farmers is yet to be declared by the Centre, so the farmers with cash in hand are facing a major loss.

Several farmers who sold their land in the Amaravati Capital Region in 2013-14 were left holding a lot of cash in their bank lockers. They are now hunting for friends and relatives who can accommodate deposits up to Rs 2.5 lakh in their bank accounts without attracting a penalty.

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Bank officials at Vijayawada, Mangalagiri, Thullur and Guntur said that anxious farmers were doing the rounds at banks and asking officers how to deposit money without attracting penalty.

Between October 2013 and March 2015, many farmers in the Amaravati Capital Region sold their lands amid reports that the new capital city of Andhra Pradesh would be established there, and land rates went through the roof. Land which earlier cost Rs 40 lakh per acre was sold at Rs 1 crore or more. At least 6,500 acres were sold.

However, as the state government fixed the registration value of land between Rs 8 and 16 lakh, about 95 per cent of the money was paid in cash. While most of the farmers parked the money by purchasing cultivable land elsewhere, building houses or buying luxury cars, some farmers deposited them in lockers or kept the cash in safes at home.

A Balaram Reddy, a real estate agent at Patamata in Vijayawada, said, “There is at least Rs 5 to 6 crore in cash belonging to farmers of villages under Thullur, Tadepalli and Mangalagiri mandals. The farmers, who became millionaires overnight, are running from one bank to another to find ways to exchange the demonetised currency or deposit it. Some are even approaching real estate agents. What can we do?’’

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An SBI official at the Mangalagiri branch said, “Some farmers were lucky that they opened multiple bank accounts during the land deal frenzy in 2014, when banks conducted drives to encourage customers to open accounts. Many of them have four or five accounts. Farmers are spreading the deposits in these multiple accounts. We witnessed a lot of that in the last two days.’’

According to Ramakrishna Reddy, MLA from Mangalagiri, “Some farmers preferred just one account as they wanted less complication. The farmers who accumulated money in bank lockers to use for marriages are doomed.” He added that his phone was constantly ringing as farmers from his constituency were seeking his advice. “They became rich overnight two years ago, and poor by a few lakhs on November 8 night,’’ Reddy said.

The exemption on capital gains tax for Amaravati farmers is yet to be declared by the Centre, so the farmers with cash in hand are facing a major loss.

However, a new business has begun in the villages of the region. Mokamatam Venkatesh, a real estate agent turned currency agent, in Inavolu village said, “Rs 300 commission for a Rs 1,000 note, Rs 150 commission for a Rs 500 note. That is the rate. We take your useless currency notes now and pay you back three months later. There will be nothing on paper; no signatures, no promissory notes, no bonds, etc. Just an assurance that you will get back your money minus the commission after three or four months.”

He added, “Business is good; many people who do not have enough bank accounts to deposit the cash without attracting penalty are my customers.”

“Agents are using accounts of Below Poverty Line (BPL) families, or accounts opened by people under various government schemes to receive benefits, to deposit the money collected from people with lots of cash,’’ an official said.

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First Published on: November 14, 2016 3:34 am
  1. A
    Aryan.barb
    Nov 14, 2016 at 9:02 am
    Let the farmers suffer. This suffering should be compared with the sufferings of soldiers in the border. Those soldiers suffer everyday to save our blood-e barb-aryan-Pandits who came from western Iran. But these stupid lower caste farmers don't have any respect for blood-e barb-aryans.
    Reply
    1. S
      Satendra kumar
      Nov 14, 2016 at 1:42 am
      Good question for farmers who sold thier land for development and didn't buy anything.Firstly keeping tendered legal notes for myself is not constructive in the bank lockers secondly if deposited with all incursion chargers is very viable respect and honesty.The fault lines within yourself?The punter looser or winner the law have to decide.
      Reply
      1. M
        MyTake
        Nov 14, 2016 at 7:25 am
        Even if they sold land for cash why they could not deposit it in the bank instead of keeping in the safe? Does the note lay eggs in the safe?
        Reply
        1. M
          MyTake
          Nov 14, 2016 at 7:48 am
          Correct. Unless they give proper justification for doing so!
          Reply
          1. E
            End of
            Nov 14, 2016 at 11:26 am
            ha ha ha..mirchi lagii mirchi lagii..lol!
            Reply
            1. A
              Aravaazhi
              Nov 14, 2016 at 1:21 pm
              All over India, all those who sold Agricultural land for family needs this financial year or this month are in deep trouble. Even if the seller of an Agricultural land insist on white money, the maximum buyer pays is the amount which is equal to the guideline value and gives rest in black. Government must consider this issue.
              Reply
              1. A
                ashok s
                Nov 14, 2016 at 10:28 am
                5axed land buyers , investigation on land deals should be nx operation of pm. Both buyer and sellers should be not be spared . check account of ostwal builders in Mira road for example
                Reply
                1. A
                  ashok s
                  Nov 14, 2016 at 9:56 am
                  From where sir dhanajay got a fig of one cr is he working as peon in ostwal corp
                  Reply
                  1. A
                    ashok s
                    Nov 14, 2016 at 9:22 am
                    Now I say I declare that ms ostwal builders brought land bank in Mira bhayander area from farmers in huge cash deal and then converted them in for construction business . they changed their black money in white . now this farmers loose the wealth . its a case of intelligent business man and fool poor labourers or farmers. Can system justify the act on emotional ground or refer it to legal process .I mean by way of your intectuality can you suppress a unknowinglble poor peasants. I say enact a emergency court as such matters will be coming from each nuke and corner and if such problems are not addressed properly then it will be mission accomplished but compensated on poor status of one.
                    Reply
                    1. A
                      ashok s
                      Nov 14, 2016 at 3:21 am
                      Their should be no amnesty to this act of farmers ,but at same time they should be protected . all land deals in last five years should be scrutinized and dwellopers who bought such land parcel should be penalized for the act and not farmers . the farmers should get relief once he presents the deal doxs to the govt authorities and disclosed cash amount of deal.
                      Reply
                      1. B
                        Brahm Gaur
                        Nov 14, 2016 at 10:16 am
                        Parking the money in lockers or keeping it at home is immoral. This money was lockedup. It was not adding any value to the national economy anyway. The farmers should have come clean when 3 months time was given to everybody. The money is worth zero. Too much greed leads to bankruptcy. I have no sympathy with sych people.
                        Reply
                        1. C
                          Chandrashekhar Deshpande
                          Nov 14, 2016 at 12:41 am
                          If they receive Monies from Government Sources then they should not fear.Pay the Tax and enjoy it.
                          Reply
                          1. R
                            ramesh
                            Nov 14, 2016 at 7:07 am
                            amaravathi is not india . its one odd stody created by land hungry and most corrupt chief minister of india under the illusion of development.lt;br/gt;go to bundelkhand, vidharbha and sensitise your self..how they are suffering specially in this season due to lack of liquid cash to procure ferti and chemicals..how many seed or fert shops accept card payment in india
                            Reply
                            1. C
                              Common
                              Nov 14, 2016 at 2:13 am
                              It shows the incompetence of the bank officials. They should simply deposit the amount in the bank account and issue a debit card. But hey they have been paid by the AAP and congress to increase problems for the common man,
                              Reply
                              1. I
                                IE
                                Nov 14, 2016 at 8:56 am
                                Vote again for Bankrupt Jumla Party(BJP).
                                Reply
                                1. M
                                  Meenu
                                  Nov 17, 2016 at 12:35 pm
                                  After independance all are equal
                                  Reply
                                  1. D
                                    Dr M
                                    Nov 14, 2016 at 6:49 am
                                    And the Congress/B S P/Mulayam/Lefties argue the case of these poor farmers who prefer to keep huge quanies of their white money in bank lockers/safes at home instead of the bank.lt;br/gt;You are free to draw your own conclusion about such stories and the integrity of supporters pouring tears over them.
                                    Reply
                                    1. H
                                      harun
                                      Nov 14, 2016 at 4:49 am
                                      What Modi could have done is made cash deposits upto 10 lakhs in a active Income tax account permissible.lt;br/gt;lt;br/gt;Active account means one were Tax is remitted in a Given Pan Number every year.
                                      Reply
                                      1. N
                                        NArayan
                                        Nov 14, 2016 at 9:57 am
                                        they should ask CBN for a solution to the mess he put them into...
                                        Reply
                                        1. N
                                          NArayan
                                          Nov 14, 2016 at 9:57 am
                                          they should ask CBN for a solution to the mess he put them into...
                                          Reply
                                          1. K
                                            Kay Gee
                                            Nov 14, 2016 at 12:41 am
                                            Why did Govt paid money in cash? How capital gain applicable to farm land inherited. It is not possible to put 3 crore rupees in a bank locker aslocker is not big enough.
                                            Reply
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