A new nationwide survey has once again exposed the uncomfortable truth about black money in India’s real estate sector. While the country has seen rapid digitalisation and stricter banking regulations, the old habits of cash payments and off-record transactions still dominate property dealings.
According to a LocalCircles survey, nearly two out of every three homebuyers admitted that they paid at least a part of their property’s value in cash. This clearly shows that black money continues to circulate freely in real estate transactions despite various reforms.
For most buyers, paying a portion in cash is often seen as a way to speed up the process or negotiate a better deal. For sellers, it is a convenient method to avoid taxes or adjust values quietly without raising official scrutiny. This unspoken agreement between both sides keeps the informal economy alive even within an increasingly digitised framework.
Experts say that bribery and under-the-table payments are still common during approval stages and registration processes. Although government measures such as the Real Estate (Regulation and Development) Act (RERA) and improved digital record systems have helped bring more transparency, these efforts have not fully eliminated cash-based practices.
The findings suggest that while rules and reforms can bring partial control, a real cultural shift toward transparency is still missing. Unless mindsets change, black money will continue to remain a shadow player in the property market, no matter how digital or documented transactions become.
