The demonetisation of high-value notes has affected the real estate market in Amaravati, the new capital city of Andhra Pradesh which is under construction. No land transaction has been completed since November 9, and locals are now demanding higher land price from the government.

Government has not increased the market value of the lands in 29 villages. The government price of land is Rs. 4 lakh to 18 lakh per acre in villages in Amaravati area, but the market value has shot up to Rs. 1 crore to Rs. 2.5 crore per acre. 

Farmers complain that the government has promoted black money in the region, which has in turn affected them. 

“The state government promoted black money in capital region in land dealings. The businessmen, politicians and industrialists make their black money into white by purchasing lands of Amaravati,” Ramulu told Deccan Chronicle.

Now the farmers are seeking revised land price to at least Rs. 1 crore in Amaravati region.

Another farmer alleged that the government cheated them by collecting land and paying cheaper rates under Land Pooling Scheme, and did not revise the land price of 2 villages in two years. 

However, it was reported that TDP leaders promoted open market land price abnormally to make their black money to white.