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Illegal money transaction going on in Mumbai real estate market

No Comments Sub Category:Mumbai,Realty News Posted On: Aug 09, 2012

As revealed by sources, in Mumbai‘s real estate market, cash transactions are still prevalent during transactions.

The system of demanding an illegal cash payment still exists in many pockets of the city, especially Bandra, Khar and Juhu belts in the western suburbs.

In the 1970s, builders used to take 80 per cent in cash and 20 per cent as a cheque from property buyers. A decade later, it was 60 per cent cash and 40 per cent as a cheque payment when tax rates were lowered.

The amount of black money that changes hands has reduced subsequently but many builders continue to demand a substantial part of transaction costs in cash. It could be anything between 15 per cent and 40 per cent of the value of the property. The practice is prevalent although many of the bigger developers now accept the full payment by cheque.

To read more real estate news:

Corruption to be blamed for high prices in Mumbai realty sector

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