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India’s Corruption Infested Realty Sector gets Raided by Tax Department in another Futile Exercise

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India’s Real Estate Sector is known for its corrupt and dubious practises.The Real Estate Companies manipulate their financial statements to such an extent that even India’s “well connected” Fund Managers don’t trust them.This has been the cause for their poor performance in the stock markets and the stalling of 10-15 IPOs in the Realty Sector.Even Investment Bankers in India who are quite adept at selling Junk Offerings like Aster Silicates, Prakash Steelage, etc,are finding it tough to sell these Real Estate Companies.This by itself speaks a lot about the endemic corruption amongst these entities.Raids by Government Officials is not a new phenomenon for these companies.Recently Hirnandanis who are amongst the best known developers got caught in a Provident Fund Scam.Now comes the news of a massive raids on Real Estate Companies in India’s National Capital Region.450 Raids are being conducted on developers such as Paras and Amrapalli and huge cash stashes have been already been confiscated.These raids have a political angle to them as well as opposition businessmen are being targeted.

The Developers as usual are being brazen about it denying any wrongdoing despite tons of cash and incriminating documents being found.These Raids never result in convictions or prison terms and in India are generally politically motivated.Most of the Government officials are a part of the gravy train and would not touch connected Real Estate Developers without a push from their political masters.Expect these Developers to start their business as usual in a couple of months as India’s Political and Business Elite toys with the country’s laws with impunity.

IT raids on Paras Buildtech yield Rs. 22.3 cr in cash – NDTV

The income tax (IT) department has seized Rs. 22.3 crores from an associate of real estate company Paras in a major crackdown today. This is the largest unaccounted cash haul in Delhi.The IT department conducted nation-wide searches on more than 70 premises of major real estate developers in the NCR including Paras and Amrapali group over alleged tax evasion.

The department also took the help of its various offices located at Agra, Bulandshahar and some places in Haryana to conduct these searches which are expected to continue till tomorrow.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

4 Responses so far | Have Your Say!

  1. ashu

    It is a well knit net that benefits every body except the genuine end user. In escalating prices of real estate benefits every body such as builders,investors,financial institutions,corrupt politicians,corrupt bureaucrats and government for enhanced revenue.There is no law exist for these people. They flout every law and make illegal construction with all possible corrupt practices in connivance with the corrupt authorities then users have to face the heat these Dept. on illegal construction. Why the state govt./central govt. are shying away in fixing regulators for transparent deals. Every time this issue is raised these Govt. backed down due to funding from Realtors.It is high time we the citizens of this country should force Govt. to appoint regulators for clean dealings between builders and users. This is only business after gambling which can multiply your money. This can not happen if the Govt. keep vigil on these corrupt buliders.

  2. Abhishek Shah

    Well written comment ashu but how can we expect the government which is ruled from the politicians benefiting the most from Real Estate Corruption to clean up the Sector

  3. ashu

    Dear Shah I appreciate your news item . You have done the right thing by bringing this fact once again for debate.With these news clips only we can make aware the public of the fact these entire vicious cycle exist for sucking our hard earned money . Ultimately it is end user who is forced to pay for the pockets of these criminals/corrupt peoples.If this fact is brought to the notice of the general public again & again, the govt. shall be forced to take remedial measures. Maharashtra Govt. promised to bring the legislation for appointing the regulator in this monsoon session. Till now we have not heard.

    Shah pl keep on writing about it. People like me are there to support these type of voices.

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