Just about everyone who has seen Hyderabad transform, are aware of the huge monies that change hands during real estate deals.
It is also widely known that almost all such money is black money as the land is sold and bought at a price that is much, much higher than the government rates.
For example, if a square foot costs Rs 2000 officially, it costs nothing less than Rs 5000 when the actual transaction happens.
It means that Rs 2000 would be in white and Rs 3000 would be in black. Without being actually aware of ‘black’ money, many people take part in deals which are quite common in realty. But this is not the case with Andhra alone. The situation is the same all over the country and despite various government measures, it is a known fact that the real estate sector thrives on black money.
As far as Andhra Pradesh is concerned, it is a newly carved out state. The new capital city has just been announced. Also, AP CM Babu has announced special packages to each of the 13 districts. So, the real estate is booming at lightning speed in the state.
Given this scenario, there is lots of buying and selling happening in AP. While a few are being registered as per government norms, many are unregistered mutual understandings between both parties.
Though the AP government has been crying hoarse that they will not support the realty business, the business is thriving nevertheless.
The rates are particularly high in Krishna and Guntur where the realtors are making loads of money. And according to rumours in the realty circles, a business amounting to Rs 1,00,000 crores of black money has happened in the past few days.
In fact, those in realty business are surprised by the black money that is being pumped into the market. But the talk all over is that the realty business has touched Rs 1,00,000 crores in AP. Are such rumours are true or false, only time will tell.
