Why Realty Sector Contributes To Black Money In India?

Why Realty Sector Contributes To Black Money In India?

By SiliconIndia   |   Wednesday, December 19, 2012   |    3 Comments
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Bangalore: In a recent Corruption Perceptions Index (CPI) 2012 survey, out of 176 countries, India ranked 94, which is even worse than China and Brazil. Corruption prevails in the real estate segment too. Corruption has become an unresolved issue in India that has been spread throughout the country like a deadly plague hindering the country’s growth. There have been many corruption cases that made headlines and caught our attention because of its illegal money involvement.

Below are few reasons why the land in India attracts lots of black money, reports Alam Srinivas from BBC News.

1) Mismatch in the equation: demand and supply

In India, the rate of urban housing shortage has decreased since 2007 but still, a quarter needs housing, according to the report of the Technical Group on Urban Housing Shortage.

The report showed that Indian cities are falling short of around 18.8 million homes. Alternatively, the current housing shortage scenario has improved in comparison with 24.7 million in 2007 which was recorded by the same group.

Also Read: India's Tallest Residential Towers

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Reader's comments(3)
1: as opposed to verifying what in form of law can be done to prevent it, IF we have more efficient, moral and non corrupt officials at all land related government offices, we may fare better here. Also, if there are people in the government machinery that "refuse" to take a bribe and ensure that none in their respective units do so are required to reduce this scourge. Jai Hind.
Posted by:Srivas - 21 Dec, 2012
2: People also convert their white money into black to earn high returns. Few people purchase property through black money and sale it out in white and purchase again a residential property to save taxes few invest in capital gain bonds. Involvement of uneducated and very less educated people are main problem of this sector. Biggest problem is trend.
Posted by:Mukesh Chand Gupta - 19 Dec, 2012
3: Corruption is in every sector not only in real estate.
Posted by:Jini - 19 Dec, 2012

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