Government Sponsored Black Money Investment – Residential Plots

What the F**k does the Title of this Article say ? Well, welcome to the real world – Karnataka – Land of Corruption and Scamsters. I am narrating a real life experience of mine at the office of sub-registrar in Karnataka.

I saw a transaction where the BUYER and the SELLER were counting bundles of CASH which I have never seen in my life. This is how the deal was worked out. The valuation was done at INR X. The Buyer wanted to just pay just 1/4th of the X White [White in the sense, on which he will pay the stamp duty] and the rest is CASH. By the virtue of Karnataka Land Registration Act, all deals below sum of Rs 30 Lakh need have PAN Number quoted during the transaction. [Compare this to even an investment of Rs 500 in Mutual Funds which will be rejected without PAN]

The Buyer of Property was insisting to the Seller to accept everything in CASH when the seller got angry and walked out of the deal; enter the middle-men who pacified and said they will get a DD for the white amount.

I spoke to one of the brokers and he said, we deal everything in CASH and then the Seller usually goes and BUYs another property which will also be undervalued by 75% and he pays in CASH too and the cycle continues. Holy Jesus!!! I was stunned. The talk of Income Tax, etc is an alien word to these folks.

The Government of Karnataka as well as Central Government is aware of such deals but yet lack the will to curb them. What about we hardworking Middle Class Salaried People paying Huge Sums of Tax ? Lord Please Save India from the clutches of Dirty Bureaucracy and Politicians.

4 thoughts on “Government Sponsored Black Money Investment – Residential Plots”

  1. Many a times, for a longtime low valuation in registration of land is relied upon to avoid high cost of registration based monetary values. This can be curbed only by introducing land sized based stamping and registration which will not vary with monetary values. For this purpose Government may have to classify the lands in each administrative locations and fix rates according to square feet of land transferred. One historic area of black money generation ie real estate will come down though now black money generation had gone to fresh areas like educational institution.

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