'Trying to buy a property using white money...': Black demand leaves techie stuck

After six months of house hunting, Kapil, a Delhi-based techie, hit a wall -- not because of high prices or poor listings, but due to something far more entrenched: black money. 

“From last 6 months, I am trying to buy a property using 'white' money! Not able to find a single seller (except under construction properties), who is not asking for 25-30% amount in black,” he posted on X, summing up his frustrating search.

Kapil recently visited a property broker to inquire about a plot. The response stunned him. “The property agent informed me that the owners are demanding 70% of the payment in black money, with the official registry reflecting only 30% of the actual cost,” he wrote. 

The agent even added that salaried individuals rarely buy in that locality — black money is the default currency.

“For someone earning a salary and paying taxes honestly, the situation is impossible,” Kapil explained. “First, they must pay 40% in income tax, and then they're expected to shell out 70% of the plot’s price in black money. It's simply unaffordable.” 

In contrast, he claimed, business owners sidestep taxes, fund deals with black money, and continue the cycle of off-the-books transactions.

One user’s response went straight to the root: “Black money isn’t the villain here. The system that makes honest money unviable is. Fix circle rates. Fix incentives. People will follow.”

According to a 2024 national survey, 90% of Indians believe black money still plagues the real estate sector. Nearly half of recent property buyers admitted to paying a part of their transaction in cash—8% said over half of their deal was in black.

Resale properties are where the rot runs deepest. Unlike under-construction units regulated under RERA, secondary market deals remain shadowy. Sellers dodge taxes by underreporting sale prices, and buyers comply to cut down on stamp duties—despite laws like the Benami Transactions Act, Sections 43CA and 50C of the Income Tax Act, and limits on cash dealings above ₹20,000.