When a retired IAS officer confirmed as much as shut a ₹14 crore farmland deal, solely a fraction of the cash moved via official channels. The remainder — a staggering ₹10.5 crore — modified palms 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 huge cash-based offers shielded from tax scrutiny.
A Reddit submit lately reignited the dialog round black cash in Indian actual property, significantly 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 lately I participated in a land deal… the opposite occasion was a retired IAS officer who was posted because the collector of our district. (The land was bought 2 many years 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 via 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 discuss.
“As I used to be a UPSC CSE aspirant earlier than, I used to be very scared with the best way these individuals had been dealing with money,” the person added. “They left I feel 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 nearly 75-80% black cash in land offers.”
The submit drew a whole bunch of reactions, many echoing related experiences throughout India.
“What else had been you anticipating?” replied one person. “In actual property and particularly land, unwritten rule nearly wherever 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 ebook worth of solely ₹3 lakhs.”
And a fourth summed up the sentiment: “For this reason Black Cash won’t ever go away from India. NEVER… It’s a Win-Win Scenario for each events.”
