Realty: Legal down, illegal up

Prices of plots in such colonies have gone up by 30-50 per cent lately, as the deals thrive purely on black money.
Prices of plots in these unauthorised colonies of Delhi have gone up by 30-50 per cent lately
Prices of plots in these unauthorised colonies of Delhi have gone up by 30-50 per cent lately

As the prices in all segments of realty projects have come down after the crackdown on black money, unauthorised colonies in the capital are exception to the trend. Prices of plots in such colonies have gone up by 30-50 per cent as the deals thrive purely on black money. It was revealed that huge amount of unaccounted cash has been pumped into the properties in some of these colonies as the transaction does not involve registration process.

While the prices in all segments of real estate projects have come down after the crackdown on black money, unauthorised colonies in the national capital are exception to the trend. Prices of plots in such colonies have gone up by 30-50 per cent lately, as the deals thrive purely on black money. It was revealed that huge amount of unaccounted cash has been pumped into the properties at some of these colonies as the transaction does not involve registration process.

Narendra Modi government might have given another option to turn black money into white by paying certain taxes, but, there are many people who have already invested a huge sum of unaccounted cash in properties at unauthorised colonies of Delhi.

Demand of plots in colonies, such as Bawana, Kirari, Najafgarh, Chawala, Mundka and other villages of Outer Delhi areas, has gone up leading to a sudden surge in prices. Bhawesh Tyagi, a property dealer of Outer Delhi, said, “Properties in these colonies are sold and purchased only on the basis of power of attorney and there is no record of actual money transaction in this process. Deals involve black money.

Say if someone sells his property for Rs 50 lakh, he may show just Rs 2 lakh in the sale deed. It is like an agreement between seller and buyer, which is notified by a notary in city courts.” Explaining further, another property dealer said the deals are being fixed secretly because of the crackdown by the income tax department. “Plots are sold only to trusted people.

Many local politicians are also involved in such property deals in Outer Delhi area. But, outsiders can’t invest in such properties. Besides, property dealers have also got scared after the raids by Income Tax Department officials,” he added, seeking anonymity. Real estate agents also agreed that property prices in authorised colonies have come down as the transaction happens on the basis of circle rates of the respective areas. “Generally, the market prices is similar to local circle rates because of low sentiment in the market. In such cases, one has to show the full amount in white and the buyer needs to pay stamp duty to the government,” said Tyagi. Regularisation of about 1,700 unauthorised colonies, spread across Delhi, has remained a political issue since last many years. All the parties, including Congress, BJP and AAP promise regularisation in their manifestoes as such colonies comprise major vote bank

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