The traditional system of Zamindari has been working for centuries in India. It has origins of powerful people represented by kings and caste groups owning large segments of lands and collecting favors from the people living on that. The symbolic system was abolished in India after the independence in 1947. The land was taken away from the zamindars and used for public purpose for the development of nation. The idea behind the zamindari system was that once the land was captured either by power or by other means it becomes hereditary and the next generation kept enjoying the benefits. It was represented by specific higher caste group and the people living or farming on that land had no right on the land, they had to pay part of their earning the owner of the land.
Although the zamindari system is legally banned, it is still persistent in the rural area in different part of the India. The dominant caste still own huge portion of land and it is given to the laborers who don't have any rights but are required to pay specific portion of the farm output. Like many laws in India abolition of zamindari system is not implemented properly. Land reform is only limited to few states and forward caste still works like zamindars in their villages.
Not so surprisingly, the zamindari system works in urban areas also. I would like to say it is sophisticated system of zamindari, as it keeps the spirit intact of the traditional zamindari system. The urban areas are dominated by forward caste people as they were progressive with education and business due to better economic and social background. The government sector despite the law of reservation in government jobs is unable to fill up the vacancies and private sector never bother about upliftment of the backward SC/ST population. Forward caste migrated to urban centers and captures most of the real estate properties. Now who so ever comes for employment in especially in private sector, with whatever right educational background, has to pay the huge rent for staying in the city and do some economic activity. The rent authorized by government or paid by the company is never close to the actual market rate. A bright candidate would spend more than 20 years to pay the EMI, if he chooses to buy a decent flat near the place of working.
I understand that many people will raise eyebrows on the above claims made by me and question, how is this zamindari system? They would give example that irrespective of caste people pay similar rents. Also, who so ever own the property must have purchased it earlier with their hard work and not by power. And most important of all, everyone is free to own his private property legally. I would agree will all these statements but does these statements removes the actual essence of zamindari system. First of all this is a hereditary system which was earlier practiced in traditional system. Second, it is still dominated by forward caste. Even though I don't have quantifiable figures to support it, I have sufficient reasons behind it. Forward caste people owned good property in the urban areas before independence. Also, mostly forward caste people came for the formal sector of employment and business with their better education and social background. Now that mostly the first generation after independence have settled, they own the property. Till date most of the businesses are owned by the forward caste people and hence they own the private business world related assets. Third, to classify the present system the user has to pay the rent (his economic output), which is mostly being done in all places. Forth, the property are not captured by power argument has some strength but in the present system of India, it is still not properly implemented. The law and order is still for the rich and forward caste people. Many people would not deny that even a simple FIR is not registered in many cases. Real estate is still owned by people related to powerful politician. Government is acting like goons in the hands of powerful politician to capture the lands from villagers and distributing them to people related to politicians.
The modern economy, which does not necessarily means capitalist system, is meant for the right allocation of asset for the maximum output. The government plays the role to regulate this system to maximize the welfare of society. In the present system both the modern economic system and government is failing to complete their jobs properly. First, the modern economic system is still incapable of allocating resources to gain maximum output. It gives the asset to people related with politician and not to entrepreneurs or the working employed people. The money is still transferred to the hereditary of the older generation occupying the prime spots in property market.The government is not regulating the real estate market to maximize the welfare. First the most real estate property still belongs to the forward caste people which is not good for a healthy society relationship between different communities. Second, government is capturing land from the weak farmers and giving it to corporate.
How to improve the present system? First of all, the employment of a person and his stay near the working place has to made mandatory. That will also save the environmental and fuel cost of the country.Although government jobs have these things but the private sectors should not be left in the current chaotic form. The payment for housing in private sector should be linked to the market rates. Most importantly the role of black money in the real estate property market has to be removed. People would not be surprised to know that 70% of the real estate price is paid in black money in India. So, the argument that all the people are free to earn and own private property becomes senseless. The government rates for registration and rent should be market rate, and it must be implemented strictly. Also, all the transaction of rent and buy/sell should be with paid service and income tax.This would provide free regulated market for the new generation and a welfare society.
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