Ready reckoner drives black money out of realty deals

Friday, 22 February 2013 - 9:00am IST | Place: Mumbai | Agency: DNA
The revised ready reckoner (RR) recently brought out by the state government may have made the use of black money in real estate transactions a thing of the past.

The revised ready reckoner (RR) recently brought out by the state government may have made the use of black money in real estate transactions a thing of the past.

According to real estate experts, the recently-released RR rates are equivalent to market rates at most of the city’s prominent locations. Earlier, the difference between the RR rate and that of the market used to be at nearly 30-40%, and to save on taxes and get money in black, transactions of lower amounts were shown on paper.

“Because of this, many parked their ill-obtained money in the real estate sector, hoping for high returns. But now, there is no scope for unaccounted money and buyers and sellers prefer to carry out the transactions transparently,” a real estate broker in Navi Mumbai, Atul Nemade said.

Another broker, Dinesh Patil, said high demand for black money made things difficult for salaried buyers as most people buy houses through home loans. “When buyers are asked to pay an amount 30-40% more than the actual price, it becomes hard for them to raise such large sums. The excessive amount of unaccounted money in this industry was affecting the business, but things are now working well,” Patil said.

General secretary of the Maharashtra Chamber of Housing Industry (Navi Mumbai), Manohar Shroff said developers welcomed the revised rates as they, too, were victims of black money.

“Land owners demanded for a lot of money in black. As a result, many developers started demanding for the same from buyers and this, in turn, raised the cost houses. Now, deals are sealed transparently and things looking positive,” Shroff said.

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