‘Circle rate at ₹35 lakh, market rate ₹1crore…’: Homebuyer sheds light on cash dealing scam in Indian real estate

In the Indian real estate market, the bay between the region’s rates and market prices has long beengan a silent crisis. Frame rates. The official property values ​​informed by the local authorities, be the basis for calculating the stamp duty and registration fees. But these rates are often drastically lacking from actual market prices, giving rise to common practice. It takes sales values ​​and make black money transactions easier to keep taxes.

Both buyers and sellers benefit corruption in the short term, they disrupt transparency, and honestly, salaries are locked out of the household. Now the votes are called inside this institutional creep.

Recently, Reddit Post paid brutal attention in this matter. “I planned to buy property in 3rd city. The market value I want is about 1 Crore, “the user wrote. “But I learned that the circle rate is only 35 lakhs. That means: Banks will only credit me, and the rest of the books must be paid in cash.

Frustrated absurd, the user added:

They later went.

That mood was widely resonated. “There are issues related to the 3rd degree that are not easy to overcome,” he said. “High salary individuals are limited … This leaves mainly businessmen or government. Employees who deal with this real estate transactions have both of them money. “

They explained how buyers and sellers both use the black component. Buyers avoid 7% seal fee, while sellers avoid 12.5% ​​capital. The people responsible for increasing the range of rates (DM office, tehsildars) are the largest clay of black money … And they would not use any means if its level increases.

Others have resigned. “It simply came to our notice then. Real estate is the shelter of black money.

Another added.

But not all agreed. “You are wrong,” the user countered. “You can always visit the registration office and register for 1 Crore. The bank will loan for ₹ 1 Crore. In your case, the seller wants him to avoid taxes and no government.

Someone else weighed with a more optimistic score.