Similar to black money going into jewelry and gold, sizable chunk of black money seems to have gotten invested into property (flats, land, etc.) With this post we seek your inputs on how black money has been deployed into property, esp benami property transactions.
We look forward to your inputs! Transparency International India more
Builders openly solicit business in old currency though it has been DEMONITISED . This can only be done with political patronage. In a case where FIR has been filed against a prominent Builder six months back, High court asked the police economic offence wing commissioner as to why the builder was not arrested and on whose support the builder was not yet arrested . But that is all. more
Builders convert the white money into black by registering properties at a significantly lower price than the price actually paid by the buyer. There is no much technology involved. The whole process is 420 in nature. This they are doing because of ineffective judiciary system. Unless the Govt reforms the judiciary system nothing can change in the system. We read in the news paper almost daily that a heneious crime happen in the town and the culprit was caught, the police says that he was arrested many times before in various crimes. This is the problem of our inefficient and ineffective judiciary system. Thanks more
Talking about our area,its a public secret that the Jantri or the Govt approved value of any property is about 80% less than the market value,ie 20% to be paid in cheque and 80% in cash ! This is probably encouraged by powerful builder lobbies and a mix with Govt officials.This creates a big problem even for people not wanting to deal in black money as the system needs to be corrected.Many innocent citizens have been stuck with loads of old currency by either selling their only ancestral property or having ready cash to purchase their dream house.The law has to be enforced to bring the book price to more realistic levels. more
Firstly property dealers are still dealing in old demonetised HD currency.They charge about 40% more for the same and have probably found brokers who change it to new currency for a premium.These inputs are heard by me. more
It is a well known thing that while buying property, the seller want a % of agreed purchase value in black. With demonetisation, probably there would be a curb. But benami property is a big challenge. A mere look at the schemes floated and completed by the builders would give an idea as many flats are lying unoccupied. While there might be genuine buyers, many flats are owned by people to channelise their illegitimate means of earnings, e-PPB would certainly bring such people in trouble and it should be enforced. more