By Rahul The Rooster News
January 10, 2025 — Mumbai
In a deal that has raised eyebrows across Maharashtra and the country, Reliance Industries Ltd. (RIL) has acquired 5,286 acres of industrial land in Maharashtra for a mere ₹2,200 crore, sparking serious concerns over corporate favoritism, land undervaluation, and the influence of political ties.
The land parcel, situated near key infrastructure projects like the Navi Mumbai International Airport, Jawaharlal Nehru Port Trust (JNPT), and the Mumbai Trans Harbour Link (MTHL), is considered strategically vital for Maharashtra’s economic future. Experts and critics have been quick to point out the deal’s apparent undervaluation, arguing that the land’s market price could have easily been several times higher than the sale price.
A Deal Shrouded in Controversy
At ₹96 per square foot, Reliance Industries is seen to have acquired the prime land at an exceptionally low rate. The sale price has raised suspicions among industry experts, as land near major infrastructure developments typically commands much higher prices. In comparison, industrial land in Navi Mumbai and surrounding areas is often priced between ₹3,000 to ₹10,000 per square foot, depending on proximity to key infrastructure. This suggests that Reliance paid anywhere from 3 to 10 times less than the land’s actual market value.
“The deal has sparked serious questions about the transparency of the land sale process,” said Neeraj Kumar, a real estate expert based in Mumbai. “This land, with its strategic location near critical infrastructure, could have been worth much more, potentially generating revenue that could benefit Maharashtra’s public coffers. Instead, it appears to have been sold at a steep discount.”
The Growing Influence of Reliance
Reliance Industries, already a dominant player in sectors like petrochemicals, retail, telecommunications, and media, now extends its influence further by controlling vast stretches of industrial land in Maharashtra. The acquisition has raised fears of increasing corporate monopolization, with smaller businesses potentially finding it harder to compete with Reliance’s immense resources.
“This is a clear case of monopolistic expansion. Reliance is already so dominant in many industries, and now they are further consolidating their position in a key economic region,” said Shalini Rao, an economist with the Mumbai-based think tank, Economic Justice Forum. “This could stifle competition and harm smaller businesses and entrepreneurs who don’t have the same level of access to political or economic power.”
Political Allegations and the Modi-Ambani Connection
The timing and nature of the deal have also led to allegations of favoritism toward Reliance, fueled by the close relationship between Mukesh Ambani, the chairman of Reliance Industries, and Prime Minister Narendra Modi. Critics claim that the Modi government has consistently supported corporate giants like Reliance through favorable policies, land deals, and regulatory advantages.
“This deal seems to be another example of crony capitalism, where large corporations, with political connections, are able to secure valuable public assets at below-market prices,” said Radhika Jain, a political analyst. “It’s clear that the relationship between the Modi government and Mukesh Ambani is not just about business, but about significant political influence.”
While there is no direct evidence linking the Modi government to the undervaluation of the land, the growing ties between the political establishment and corporate entities have raised concerns about the fairness of such deals.
Lack of Transparency Raises Red Flags
The sale has also been criticized for its lack of transparency. Details regarding the land valuation process, whether a public bidding process was conducted, or any other competitive mechanisms have not been made available to the public. This lack of clarity has further fueled suspicions about the true nature of the transaction.
“The government needs to be accountable to the public when it comes to the sale of valuable public assets,” said Anil Deshmukh, a former Maharashtra government official. “This deal, without proper scrutiny or consultation, is a disservice to the people of Maharashtra.”
Economic and Social Implications
While the industrial development of the region could potentially create jobs and boost the state’s economy, critics fear that the benefits will be disproportionately concentrated in the hands of corporate giants like Reliance. Local communities could face displacement, and the sale’s undervaluation means the state has likely lost out on much-needed revenue that could have been invested in public welfare, infrastructure, and poverty alleviation.
“What we’re seeing is a land grab by corporate entities with the backing of the government. This is not just about business but about consolidating economic power in the hands of a few,” said Kunal Mehta, an activist with the Maharashtra Land Rights Forum. “This kind of unchecked development could lead to displacement, environmental degradation, and a widening gap between the rich and the poor.”
A Call for Greater Scrutiny
The sale of Maharashtra’s largest industrial land parcel to Reliance is a stark reminder of the growing concentration of wealth and power in the hands of corporate elites. With concerns over undervaluation, political influence, and lack of public accountability, many are calling for greater scrutiny and transparency in future land deals.
“This is a wake-up call for Maharashtra and India as a whole,” said Radhika Jain. “We need a regulatory framework that ensures that public resources are sold at fair market value and that the public interest is always prioritized.”
As Maharashtra’s future economic landscape is reshaped by this deal, it remains to be seen whether the growing influence of corporate giants like Reliance will continue to shape the region’s development in ways that benefit the wider population or simply entrench the power of a few at the top.
