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Leafing out problem

 
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It has been almost five years since I planted this tree. It's scientific name is Butea Monosperma, a seasonal flowering tree belongs to the Fabaceae or Leguminosae, commonly known as the legume, pea, or bean family.

Once I planted it, it started to leaf out rapidly with light green leaves and I was happy about it but soon after the growth halted completely with the available leaves turning dark green over time.

The tree bark is only one inch thick now but sort of woody condition, (not still a young plant). At one stage all the leaves wilted out. Once all leaves wilted, the tree was leafing out vigorously and reached to three feet height with more leaves bushy at the bottom. Then the growth halted, with the leaves turning dark green over time. I decided to prune the bottom branches to facilitate growth, but after I pruned still there was no new leaf out.

Recently the tree lost all its leaves again including the 3 feet branch dieing out. Once this happened the tree leafed out immediately but only a few buds became leaves other buds dried out. The tree is alive but only a foot tall with leaves turning dark green again.

I request any sort of advice from experienced gardeners or experts as to why the tree is leafing out rapidly only when all leaves are gone but halts shortly after that? Could it be a root problem? Are the roots in stress, if so can it survive for five years with that problem? Could it be an aeration problem. (The soil is not heavy clay soil.) But it's a kind of water logged soil below 2 feet from ground. (A fig tree planted nearby used the water below to grow rapidly into a big tree in five years.)

Could installing aeration pipes solve the problem?
 
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