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MP slams 'landbanking' scam
One MP is on the warpath over the UK’s ‘immoral’ landbanking epidemic...
Mr Mulholland, Liberal Democrat MP for Leeds North West is calling for the introduction of new laws to stop companies selling plots of agricultural land at inflated prices. The land is sold on the hope that planning permission will be granted and the investors will make a big return. Speaking after the Financial Services Authority (FSA) declared the UK's biggest landbanking scheme illegal, Mr Mulholland declared that he wants legislation to end those schemes which are "obviously a scam".
But Greg Mulholland commented: “It is time for an end to landbanking, which we have seen blight so many people's lives over the last few years. It's time the government woke up and took action so that by 2009 or 2010 we can look back and say... it can't happen again in this country."
A spokesman for the Department of Business, Enterprise and Regulatory Reform (BERR) said it was able to take action against some illegal schemes under existing laws: "Companies Investigation Branch has investigated a number of these cases and in many instances has brought proceedings to wind up the companies concerned. We will continue to crack down on companies which mislead the public in this way.
"Anyone approached by companies offering plots of land on the promise of future planning permission should be very wary and thoroughly question the information they are given."
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