Sell Me Houses to Launder My Ill-Gotten Millions -CBDT calls for report
www.cobrapost.com has recently reported that 35 real estate companies are willing to take illicit money and convert it into legit by allowing their clients to buy properties.
The CBDT has requested the Chief Commissioners and DGs (Investigation) to furnish brief findings (Investigation side and/or Assessment side) of investigations carried out and action taken, if any, within last 3 years by the officers of their charge on any of the entities of the Groups listed out in regard to the issues raised in the news item.
If not, CBDT wants them to carry out necessary investigations on those allegations. and take suitable action as per law.
CBDT wants compliance report latest by 15.12.2014 without fail.
Cobrapost reported that it found 35 real estate companies with a pan-India presence across nine states willing to do bulk transactions in black money. These companies admit helping their clients convert black money into white by letting them pay in cash a substantial part of the sale price of the properties they buy, in blatant violation of Income Tax laws, Foreign Exchange Management Act,Prevention of Money laundering Act and other laws. The black money component in these deals ranges from 10 per cent to 90 per cent. In one instance, a developer's employee was even willing to accept Rs.100 crore in black money. Senior officials said that accepting payments in black was nothing new for them and that it was an accepted norm of the real estate industry. They were willing to accept hard cash in any city and even abroad, through hawala. Some were ready to sell a property before all mandatory approvals are attained, knowing fully well that this is illegal. A senior executive of a company suggested depositing the entire component of the deal in a bank account which will be closed as soon as it is credited. Cobrapost investigated 35 firms in Delhi, Noida, Gurgaon, Ghaziabad, Jaipur, Lucknow, Mumbai, Kolkata, Hyderabad, Bangalore and Kochi.
CBDT Letter in F.No.286/61/2014-IT (Inv.II), Dated: November 28 2014