Real estate bill aims to curb black money
The Real Estate Regulatory Authority bill will go a long way in checking the huge inflow of black money into the realty sector. HT reports.Updated: Jun 05, 2013, 23:42 IST
The Real Estate Regulatory Authority bill will go a long way in checking the huge inflow of black money into the realty sector.
Though there are no exact estimates, the realty sector is known to a big generator of black money in the country. The bill approved by the cabinet Tuesday has stringent clauses to help trail money laundering in the sector.
It not only makes it mandatory for real estate developers and property agents to get themselves registered with the regulator but also makes it mandatory for developers and agents to submit a record of their accounts to the regulator.
"The records of project account would help in trailing the money inflow into the sector. Till now investigating agencies used to face a tough time trailing black money in the absence of any record," said Ajay Maken, Housing & Urban Poverty Alleviation minister.
Maken said this clause was incorporated in the bill following the advice of the finance ministry. "The department of Revenue wanted it to be incorporated," he added.
The bill, which was approved by the cabinet on Tuesday, will come into force after Parliament gives its green signal.