In Ranchi, Jharkhand, measures have been taken to tackle the prevalence of black money in the real estate sector. The Real Estate Regulatory Authority (RERA) is set to scrutinize the cash transactions involved in the buying and selling of flats or shops within multi-story buildings. Should any suspicions or confirmations of black money arise, RERA will promptly notify investigative agencies such as the Enforcement Directorate (ED) and Income Tax authorities. The Government of India has instructed RERA to take appropriate action in accordance with the Guidelines for Reporting Entities (Real Estate Agents) outlined in the Prevention of Money Laundering Act-2022. These developments have also been communicated to the Urban Development Department for their awareness and cooperation.
The utilization of black money within the real estate industry is indeed a longstanding issue, with numerous cases having been exposed throughout the country over the past decades. There are various methods employed to facilitate the use of black money in property transactions, including undervaluing the property to evade taxes, concealing cash involvement during purchases and sales, and misrepresenting the cost of brokerage or agent services. Through these means, individuals not only seek to minimize tax liabilities but also engage in the process of converting black money into legitimate funds. This illicit practice generates profits for all parties involved, including the buyer, seller, and broker. Consequently, the influx of black money into the real estate sector has been substantial.
Ranjit Kumar Chowdhary, President of the Jharkhand Real Estate Regulatory Authority (Jharera), emphasizes that RERA's primary purpose is to safeguard consumer interests by ensuring transparency in the real estate sector. The Government of India has provided instructions to RERA under the Anti Money Laundering, Countering the Financing of Terrorism, and Combating Proliferation Financing Guidelines for Real Estate Agents, 2023. RERA is fully committed to combatting the use of black money in the real estate industry. Individuals from the general public are encouraged to report any relevant information to RERA at any time. Appropriate action will be taken in accordance with the prescribed provisions.
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