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Usage of Unaccounted Cash Still Prevalent in Market: Report

Large cash transactions still present in resale realty market

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Unaccounted cash
Significant usage of unaccounted cash is still prevalent in the secondarly real estate market. Pixabay

It has been three years since demonetisation which was implemented with the aim to curb and eradicate black money. But according to a report released on Wednesday, significant usage of unaccounted cash is still prevalent in the secondarily real estate market.

The report prepared by Anarock Property Consultants said that up to 30 per cent of the total transaction value in the secondary or resale residential maket in India can still be paid in cash.

However, the primary sales market in tier-I cities offer the least scope for unaccounted wealth in property deals, it said.

“Demonetization in November 2016 sent Indian residential real estate — till then a preferred laundromat for unaccounted wealth — into an almost terminal tailspin. Even three years after DeMo, the battle is only half-won,” said Anuj Puri, Chairman Aof Anarock Property Consultants.

“The secondary or resale residential real estate market still accommodates black money; at least 30 per cent of the total cost of resale property can still be paid in cash. While more and more buyers and sellers prefer official payment routes as a matter of principle, many still use the resale property market to launder untaxed cash,” he added.

Cash in market
Many buyers use the resale property market to launder untaxed cash. Pixabay

As per the report, while the trend in the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR), which are historically notorious for black money in real estate, has tamed considerably in primary sales, their resale property markets still see cash components.

As much as 20-25 per cent of the total resale property cost can still be “adjusted” with black money, it said, adding that in Bengaluru, Pune and Hyderabad, the prevalence of transparent payment routes, even on the resale market, is much higher.

“Unlike the primary sales market, the resale market still lacks strict regulations, making it easier for buyers and sellers to use cash components.

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Also, the primary sales market involves developers with a reputation to protect, while a resale property transaction involves two individuals. The pricing of resale properties also lacks transparency,” the report said.

In the case of direct sales by developers, there are readily-available pricing benchmarks, while in the secondary market, a seller can inflate the price of a property based on location, added features and so on without stating on the books. (IANS)

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Vivo Creates History By Grabbing Second Spot in Indian Smartphone Market

Over the past four years, Vivo has grown 24 times in the Indian market. Vivo has presence in over 70,000 retail outlets across the country

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Vivo
Vivo grew 76 per cent (year-on-year) in the full year 2019Aand 134 per cent YoY in Q4 2019, driven by good performance of its budget segment series. IANS

Chinese smartphone maker Vivo created history by grabbing the second spot in the Indian smartphone market for the first time in the fourth quarter of the calendar year 2019.

Vivo captured 21 per cent market share to reach the second spot as Samsung slipped to third place with 19 per cent market share. Xiaomi was at No 1 position with 27 per cent share in Q4 2019, according to Counterpoint Research.

OPPO and Realme were other players in the top 5 list, with 12 per cent and 8 per cent market share, respectively Vivo grew 76 per cent (year-on-year) in the full year 2019Aand 134 per cent YoY in Q4 2019, driven by good performance of its budget segment series.

“Also, by successfully pivoting to online and aggressively positioning the S series in the offline segment with new features, it managed to make a dent in the Rs 15,000 Rs 20,000 segment,” said Tarun Pathak, Associate Director, Counterpoint.

Vivo
Chinese smartphone maker Vivo created history by grabbing the second spot in the Indian smartphone market for the first time in the fourth quarter of the calendar year 2019. Pixabay

Due to this, Vivo captured the second spot for the first time in India’s smartphone market According to Nipun Marya, Director-Brand Strategy, Vivo India, the goal of the company is not only to launch new devices, but also provide customers better after-sales service experience, which is the key motto of the company.

“We are deeply focused on bringing new innovations to stay ahead in the smartphone segment,” Marya told IANS “My aim is to give world-class after sales service to my consumers. I also thank them for maintaining their trust in the brand,” he added.

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Over the past four years, Vivo has grown 24 times in the Indian market. Vivo has presence in over 70,000 retail outlets across the country. (IANS)