Real estate sector – the highest black money contributor
According to the recently released ‘White Paper on Black Money’ by the Union government, real estate is the highest contributor to the total black money generated.
Depending on the parties involved and the transaction type, the ‘black money rolling’ percentage within the sector is much higher at around 30 per cent.
On an average, the real estate yields almost 300 per cent appreciation of investment across all major markets in the country. Lower supply against higher demand encourages high appreciation.
Moreover, the sector lacks strict laws and regulations, which makes it the best possible place for investing black money. Also it yields high profits in a short span of time. Most of the investors usually provide funds to developers to launch and construct the project. However, the ultimate victims in such cases are the innocent buyers.
People who initially invested in realty, used black money generated from other businesses, of whom, some of them settled as developers and others remained as investors and promoters.
To read more real estate news:
Real estate regulations should be reformed: CREDAI
CREDAI opposes any black money transactions in real estate
Source: The Economic Times
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