One of the sectors catapulting India to third highest position globally in terms of cash circulation is real estate. Despite realty associations officially declining that they transact in hard cash, the ground reality is quite the opposite.
During the three day long property exhibition organised by National Real Estate Development Council (NAREDCO) wherein several of them had put up their stalls to market their projects, some of them, were willing to accept part payment in cash. This correspondent approached some of them posing as a potential homebuyer.
Irrespective of the ticket size of the homes up for sale at NAREDCO'S exhibition, there were builders showing willingness to take as much as 60% of the payment in cash. On such mixed payment, they were willing to further negotiate the price of the apartment. This correspondent had approached big, medium and small sized developers participating in the expo.
This position of dealing in "black money" is quite the contrary to what the industry leaders have repeatedly attempted to portray ever since the demonetisation happened in the country back in November-December 2016.
On the sidelines of the exhibition, on Sunday, Free Press Journal approached Sandeep Runwal, President, NAREDCO Maharashtra and Managing Director of Runwal Group said denied any of their members or exhibition participants are involved in accepting cash as payment, which doesn't get reflected on legal papers.
He said, "At NAREDCO, there is no cash and white. It's only flexible payment option in terms of staggered payment (through banking transactions) plan till the time possession is handover to the flat purchaser." When pointed out to him about exhibitors willingness, he replied, "they must not be actual developers" and continued to add that NAREDCO's exhibition that concluded on Sunday only had "actual developers" showcasing their projects.
Earlier this year, the Reserve Bank of India in one of its report had stated that currency in circulation stood at Rs 32.2 lakh crore. High denomination note of Rs 2,000 are not being used for such payments, an indicator of people using it as a store valued currency.
As per reports, if the global data on cash in circulation is compared, India ranks third in highest cash circulation after Japan and Hong Kong to gross domestic product. Significant spike in cash circulation in India happened during the pandemic period.
In India, the per capita currency works out to be approximately Rs 22,750.
