In November 2016, India saw the first surgical strike against the rising issue of Corruption and Money laundering. It was in the form of demonetization and came as a massive suppression of corruption.
The discussion to link Aadhaar with property is in light since last two to three years, and there is an on and off in finalizing the decision. BJP government came to power in the year 2014 and have now started their second tenure. It has shown zero tolerance towards black marketing, corruption and money laundering issue.
After the successful implementation of demonetization and other steps to eliminate malpractice from the market, Modi government in their second tenure will soon be implementing their second surgical strike, i.e., linking Aadhaar with the property. If the government becomes successful in enforcing this move, it will be expected that the rate of corruption will further reduce.
In the step to reduce the growing rate of black money in India, the government stepped in the real estate sector of the economy. In the real estate market, black money swipes in quickly, and now that this practice is reduced after demonetization, the industry has seen a fall in the price of the property. Fall in the value of the property is one of the significant reasons for the slowdown of the economy.
Effect of demonetization in the Real Estate Sector
Demonetization resulted in the fall in the market value of the property and has controlled the flow of black money. This made the property affordable to the middle-class people and the people in general. Government is aiming towards Housing for All by 2022.
As per the report, the government is at their final stage in making a law for successfully enforcing the Linking of Aadhaar with the property. If the step is implemented and the law is made, it will result in many changes.
- Reduce the rate of Benami transaction
- The property will become more affordable
- The economy will witness more transparency
Once the law comes, people will try to liquidate their assets to avoid coming under the ambit of tax.
NAREDCO Maharashtra president, Rajan Bandelkar in a statement said that the process to link Aadhaar with the property would witness a slowdown in the black market, reduce in the fraudulent transaction and people who have entered into Benami transaction will rush to disinvest to avoid any legal issue. He added that property would then become less expensive and reachable for the mass.
Not only will it help to remove malpractice but will also reduce the hectic procedure that people had to undergo when buying a property. There would be an ease in buying the property such as applying for a home loan, buying and selling of property and other related transactions.
As the process would be lengthy, the government will give enough time to the people to link their property with Aadhaar. Further, this move will witness a large mass of investors coming and investing in the real estate as the scope of fraud will reduce.