Sunday, August 9, 2020
Home Business Usage of Unaccounted Cash Still Prevalent in Market: Report

Usage of Unaccounted Cash Still Prevalent in Market: Report

Large cash transactions still present in resale realty market

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.

Also Read- How To Protect Your Ad Spend From Irrelevant Traffic

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)

STAY CONNECTED

18,960FansLike
362FollowersFollow
1,781FollowersFollow

Most Popular

Was 1857 Rebellion The First War of Independence?

BY BRIJ KHANDELWAL Unfazed by the possibility that her assertions could open up a Pandora's Box of controversies and trigger a north-versus-south India debate, historian...

Richa Chadha Pleased to see Volunteers Working for Elderly Amid Pandemic

Actress Richa Chadha points out senior citizens need extra care and attention amid the ongoing Covid-19 pandemic. She recently interacted with volunteers of foundations...

Bhagavad Gita: Here is the Collection of Sanskrit Verses from Dhyana Yoga

The Yoga of Meditation uncovered by Krishna is arranged in sixth Chapter, Dhyana Yoga of Bhagavad Gita. Sri Krishna uncovers the Yoga of Meditation...

Facebook Produces 600 Homes, 70% Reserved for Low-Income Residents

Facebook has produced and preserved approximately 600 affordable homes near its headquarters in Menlo Park, California, of which roughly 70 per cent are reserved...

Google, IBM, Microsoft AI Datasets Show Gender Bias

Revealing another dark side of trained Artificial Intelligence (AI) models, new research has claimed that Google AI datasets identified most women wearing masks as...

This Year Has Been a Wake-Up Call for Us: Bhumi Pednekar

This year has been a wake-up call for us, and if we do not work towards maintaining a balance, our cities will continue to...

Anushka Sharma: Watching Movies Doesn’t Always Help You Understand Them Better

Actress Anushka Sharma says watching films does not always help understand the medium better, and that experiences in life help add value to storytelling,...

Sadhguru: Youth is the Most Alive, Idealistic, and Energetic

Spiritual leader and author Sadhguru believes in the potential of the youth. "Youth has enormous potential. If we can inspire them to identify with humanity...

Recent Comments