MUMBAI: Real estate industry today hailed the Centre's decision to bring in a law to check `benami' transactions, saying this will ensure transparency in the sector and also related fields.
Yesterday, the Cabinet approved the new Benami Transaction (Prohibition) Bill which aims at curbing the generation of domestic black money.
Apart from confiscation, the Bill provides for prosecution and aims to act as a major avenue for blocking generation and holding of black money in the form of benami property, especially in real estate.
"The Cabinet nod to curb black money in the form of benami transactions is a very welcome step for the real estate sector. This will ensure transparency in the future," Sanjay Dutt, Managing Director (South Asia) at property consultant Cushman & Wakefield Executive said.
The proposed legislation will also force current property holders to procure proper documentation and legal ownerships for their claims, ensuring that right ownership information is put in place, he said.
One of the key issues in real estate and infrastructure is lack of clarity of ownership of potential land. This law will severely restrict malpractices in land and property ownerships in India, experts said.
Bringing in transparency in realty sector has been a long-pending demand of the industry and the introduction of the Bill will ensure the same, HDIL Senior Vice-President, Finance and Investor Relations Hariprakash Pandey said.
"This is definitely a welcome move. The realty sector has been demanding some action on bringing in transparency. We believe, once enforced, the sector will come out more clean," he said.
Kumar Urban Development Chairman and Managing Director Lalit Kumar Jain, however, said the implementation of the law will be a critical aspect.
"Generally, benami transactions take place in the rural areas, especially when it comes to agriculture land. Nonetheless, any move to curb corruption is always welcome. But the critical part is the implementation of the law, which has to be strict and very prompt," he said.