Construction companies ready to accept illicit black money: Report
The expose of 35 real estate companies showed they were willing to take illicit money and convert it into legit by allowing their clients to buy properties
Nov 27, 2014
Source : The Times of India


NEW DELHI: An undercover operation by Cobrapost has exposed major construction companies willing to accept and launder illicit black money.

The expose of 35 real estate companies showed they were willing to take illicit money and convert it into legit by allowing their clients to buy properties.

Promising to do bulk property transactions ranging from 10 per cent to 90 per cent in black money were two real estate company CMDs, 10 managing directors, 15 directors and executive directors, three CEOs and COOs, a president and a vice-president, two AVPs, four heads of marketing and sales, three general managers, three assistant general managers and many other senior employees.

One employee even offered to take Rs 100 crore in black and convert it to white with help from non-banking finance companies in a clear violation of laws. According to the tapes, these officials said accepting payments in black was nothing new for them and that it was an accepted norm of the real estate industry. Some of the real estate officials were caught on camera ready to accept black money abroad via hawala.

All this endorses the fact that rampant use of black money is a well-known reality of the realty sector in India, Cobrapost editor Aniruddha Bahal said.

The 35 real estate companies caught on tape have pan-India presence across nine states willing to do bulk transactions in black money. These companies admit helping their clients convert black money into white by letting them pay in cash a substantial part of the sale price of the properties they buy.

The black money component in these deals ranges from 10 per cent to 80 per cent.Many were shown agreeing to collect cash from cities other than their operational bases, even from countries such as Dubai via hawala. They offered to understate the sale price of the property so that the buyer can save on stamp duty, and proposed to sell an undeveloped property even without obtaining necessary approvals for the project.










Latest Realty News

DLF Vs CCI: Realty major offers to pay Rs 100cr penalty
Nov 27, 2014
Mumbai: Realty major DLF has offered to pay Rs 100 crore of the Rs 630 crore crore penalty today and the Supreme Court has agreed to it
Australia mulls tighter foreign property investment rules
Nov 27, 2014
Sydney: An Australian parliamentary committee recommended strengthening rules on foreign investment in the country`s booming housing market
DLF vs CCI: Realty major hopes for a breather from SC
Nov 27, 2014
Mumbai: Hoping for a breather, realty major DLF has sought an extension from Supreme Court over the Rs 630 crore penalty levied by the competition watchdog CCI
Housing finance major bullish on UP realty market
Nov 27, 2014
Lucknow: Dewan Housing Finance Corporation Limited (DHFL), India’s second largest private sector housing finance company, is bullish on the housing finance market in Uttar Pradesh
Floor area ratio, ground coverage increased in Delhi; move to benefit buyers
Nov 27, 2014
NEW DELHI: The Centre has enhanced floor area ratio (FAR) and ground coverage in Delhi
Realty firm Puravankara enters JV for housing project in Pune
Nov 27, 2014
NEW DELHI: Realty firm Puravankara Projects has entered into a joint venture for developing a 30-acre, Rs 500 crore housing project in Pune
Affordable Housing deficit in UP almost 3 mn : S K Garg
Nov 26, 2014
Lucknow: Uttar Pradesh Government is very much concerned for providing ‘Housing for All’, as the state faces shortage of affordable housing to the tune of 3 million appx.
Govt plans to regularise illegal buildings across state
Nov 26, 2014
HYDERABAD: The state government is planning to regularize illegal constructions across the state by announcing a scheme
Registration, stamp duties to go northwards in Andhra Pradesh
Nov 26, 2014
HYDERABAD: In a move aimed at cash in on the prevailing real estate boom in AP, chief minister Chandrababu Naidu has given his nod for increase in the rate of land registration and stamp duty across the 13 districts
Govt may need gram sabha nod for acquiring property
Nov 26, 2014
BENGALURU: People in rural areas will soon have a major say in the government acquiring their land or property for projects, if a proposed amendment to the Karnataka Panchayat Raj Act becomes a reality

Latest Realty News Of State

Realty Talk's