When a retired IAS officer confirmed as much as shut a ₹14 crore farmland deal, solely a fraction of the cash moved by means of official channels. The remaining — a staggering ₹10.5 crore — modified arms in money, counted for hours inside a financial institution with quiet complicity. This was no remoted case. Regardless of years of crackdowns, India’s actual property sector — particularly land transactions — stays a haven for black cash. From benami possession to underreported sale values, loopholes within the system proceed to allow large cash-based offers shielded from tax scrutiny.
A Reddit submit just lately reignited the dialog round black cash in Indian actual property, notably in farmland transactions. “The quantity of black cash in farmland offers is staggering,” wrote one person, sharing a firsthand account that rapidly went viral.
“So just lately I participated in a land deal… the opposite celebration was a retired IAS officer who was posted because the collector of our district. (The land was bought 2 a long time in the past whereas he was serving). This land was in fact within the identify of a benami of some cousin of his,” the person wrote. The deal was pegged at ₹14 crore, however solely ₹3.5 crore was transferred by means of financial institution accounts. The remaining ₹10.5 crore was paid in money — counted over 5 hours in a non-public financial institution utilizing three money counting machines, whereas the financial institution supervisor made small speak.
“As I used to be a UPSC CSE aspirant earlier than, I used to be very scared with the best way these folks have been dealing with money,” the person added. “They left I believe just a few crores within the financial institution and carried the remaining of their automobile. My father termed them as ‘cheetha’ for counting every gaddi… I used to be shocked to know that there’s virtually 75-80% black cash in land offers.”
The submit drew lots of of reactions, many echoing related experiences throughout India.
“What else have been you anticipating?” replied one person. “In actual property and particularly land, unwritten rule virtually anyplace in India is: you pay circle charge in white, relaxation in money/black… IAS or non-IAS, state of affairs is similar.”
One other shared, “In Tier 2 cities… in farmlands, that [white component] may very well be as little as 5%. I’ve seen land offers method above ₹14 Cr wherein the cheque quantity was 7-7.5%, relaxation in money.”
A 3rd added, “Round Hyd there are some lands the place the ratio is 97:3… a ₹1 Cr land may need a guide worth of solely ₹3 lakhs.”
And a fourth summed up the sentiment: “That is why Black Cash won’t ever go away from India. NEVER… It’s a Win-Win Scenario for each events.”
