Press Release Operation Black Ninja: Sell Me Houses to Launder My Ill-Gotten Millions Cobrapost exposes how 35 real estate companies are willing to take illicit money and convert it into legit by allowing their clients to buy properties. Promising to do bulk property transactions ranging from 10 per cent to 90 per cent in black money are two real estate company CMDs, 10 managing directors, 15 directors and executive directors, three CEOs and COOs, a president and a vice-president, two AVPs, four heads of marketing and sales, three general managers, three assistant general managers and many other senior employees. One employee even offers to take Rs. 100 crore in black and convert it to white with help from non-banking finance companies in a clear violation of Income Tax laws, Foreign Exchange Management Act, Prevention of Money Laundering Act and others. 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. Some of these real estate officials are caught on camera ready to accept black money abroad via hawala. All this endorses the fact that rampant use of black money is a well-known reality of the realty sector in India. New Delhi: In an investigation lasting more than 18 months, Cobrapost 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 suggests depositing the entire component of the deal in a bank account which will be closed as soon as it is credited. The 35 companies that Cobrapost investigated in Delhi, Noida, Gurgaon, Ghaziabad, Jaipur, Lucknow, Mumbai, Kolkata, Hyderabad, Bangalore and Kochi are Ajnara India Ltd, Earth Infrastructures Ltd, Mahagun Group, Prateek Group, Sarvottam Group, Lakhani Builders Pvt Ltd, Lodha Group, Kanchhal Group, Raheja Developers, Shalimar Corporation Ltd, Geoworks Realty Pvt Ltd, Investors Forum India, SVP Builders (I) Ltd, Rajput Properties & Developers Pvt Ltd, International Land Developers Pvt Ltd, Fortune Infra Developers Pvt Ltd, Manglam Build-Developers Ltd, Godawari Developers, Rudra Buildwell Projects Pvt Ltd, Shri Group, Plus Projects Pvt Ltd, RG Group, ABW Infrastructure Ltd, Alpine Housing Development Corporation Ltd, Antriksh Group, National Builders, Okay Plus Builders & Developers, Janapriya Engineers Syndicate Pvt Ltd, Bamatech, Archies Projects Pvt Ltd, Asten Realtors Pvt Ltd, Vibgyor Housing Ltd, Travancore Builders Pvt Ltd, Vedic Realty Pvt Ltd and Concorde Group. The combined turnover of these companies—spread across Uttar Pradesh, Delhi, Haryana, Rajasthan, West Bengal, Andhra Pradesh, Maharashtra and Karnataka—would run into thousands of crores. Taking an alias, Cobrapost correspondent Mohammad Hizbullah approached these companies with an offer of buying properties in bulk on behalf of a prominent politician he was supposedly working for. He put a rider to this prospective bulk deal: a significant part of the payment will be made in black. The intent of the politician is not only to get good returns on his investment but also convert his black money into white. Almost all officials of these companies readily agreed to do the favour, throwing open a host of ways to help launder money. A summary of how these companies proposed to launder the money of a fictitious politician is given as follows: They agreed to accept black money ranging from 10 to 90 per cent of the unit price. Many of them agreed to collect cash from cities other than their operational bases, even from countries such as Dubai via hawala. Some said they do this all the time. They would understate the sale price of the property so that the buyer can save on stamp duty. They proposed to sell an undeveloped property even without obtaining necessary approvals for the project, a grossly illegal act. Putting the entire black component on their table is a precondition for some developers to close a deal. In other instances, particularly in case of a newly developed project, they would show only the book value of the said property at the time of registry, again not on par with prevailing market prices. Some confessed to have been dealing in black money in the past and that it was nothing new for them. Eager to help the rich “politician” invest his millions in properties developed by his company, one of the senior executives of the Calcutta-based Vedic Realty asked the Cobrapost correspondent to deposit all the black component of the deal, Rs. 50 lakh per unit, in a bank account which will be closed as soon as it is credited. Listen to what Suman Banerjee is saying in front of a hidden camera: “Main aapko account number de doonga, theek hai bank number de doonga account number de doonga … wo account mein jayega humein wo confirm kar denge mil gaya. Uske baad account hi band ho jayega (I will give you an account number, ok. I will give you a bank number … as soon as the money is credited to our account, they [the bank] will confirm us. After that the account will be closed).” When we had heard last of a regular bank helping someone convert black money into white? It was Cobrapost’s Operation Red Spider which exposed scores of banks and insurance companies across the country indulging in money laundering. Now, we know how real estate companies launder money using regular banking channels. Deepak Lodha of Mumbai-based Lodha group says you are not a thief until you are caught: “Chori karna gunah nahi hai, chori karke pakde jana gunah hai (stealing is not a crime … getting caught after stealing is a crime).” Rampant use of black money is a well-known reality of the realty sector in India. If estimates by consultancy firm Liases Foras are to be believed, about $6 billion or 30 per cent of total transactions in the country’s real estate sector were done in black in 2012. However, these figures may not reflect the truth completely as real estate business, which is largely unregulated, accounts for more than a tenth of Indias $1.85 trillion economy. The loss to the national exchequer in terms of tax evasion might be much more than what has been projected in such market studies. The use of black money in real estate also results in speculation, edging the needy buyers out. According to the Ministry of Housing and Urban Poverty Alleviation, 11.09 million homes in urban areas are lying vacant for want of buyers as home-buyers find the prices too high to afford. In view of the findings of the Cobrapost exposé, it is upon the government authorities to investigate these real estate companies for violations of the laws of the land. It is high time the passage of the Real Estate (Regulation and Development) Bill is passed by Parliament to stem the rot in real estate sector and make it more transparent for both developers and buyers. Aniruddha Bahal Editor, Cobrapost Date: For more details log on to cobrapost Below are some quotable quotes of the senior management in these companies: 1. “60 per cent kar lengay (we will do 60 per cent)…..Sir token lekar baithainge tabhi baat ho paaegi (Sir, we can have further conversation only after you present a token [amount])”-- Atul Gupta, joint MD, Earth Infrastructures “Woh saara hawala ke through hoga, sab ho jaega..woh sab kuch hum khud regularly transaction karte hain..usme koi problem nahin hai (All that will be done through hawala … we do such transactions regularly… there is no problem in that)”-- Bushra Aslam, associate vice president, Earth Infrastrures. 2. “Kachha le lenge …60-40 ho jaaega (We will take raw...60-40 will be done).… Ek deal ho jae phir doosri par toh bahut scope khul jaaega… jitna hai sab khafa denge usmein koi dikkat nahin hai (Let the first deal happen..then there is a lot of scope… we will accommodate the entire amount… there is no problem in that)”---- Prashant Tiwari, chairman and managing director, Prateek Group. 3. “safe rate hai maan ke chalo 20-25 per cent (you can assume 20-25 per cent to be a safe rate)….. “50-50 kar do usko ([we] can make it 50 [black]-50 [white]”-- Ashok Gupta, managing director, Ajnara India Ltd. 4. “Chori karna gunah nahi hai, chori karke pakde jana gunah hai (Stealing is not a crime, getting caught after stealing is a crime)” – Deepak Lodha, Lodha Group. 5. “Main aapko account number de doonga, theek hai bank number de doonga account number de doonga … wo account mein jayega humein wo confirm kar denge mil gaya. Uske baad account hi band ho jayega (I will give you an account number, I will give you a bank number … as soon as the money is credited to our account, they [the bank] will confirm. After that the account will be closed)” -- Suman Banerjee, general manager, Vedic Realty. “50 lakh tak toh ho hi jayega (Up to Rs. 50 lakh will be accepted [in cash]).”-- R.K. Modi, managing director, Vedic Realty Pvt Ltd, 6. “Bahar kahin de do (Give the money anywhere abroad).” Where? Replies the Raheja CEO, “Dubai… “Sharjah mein koi problem nahi hai aap jab bolenge hum pahunch jayenge wahan (There is no problem in Sharjah … when you tell us we will be there).” -- Karthik Ramachandran, director-cum-CEO, Raheja Developers Ltd. (has reportedly quit Raheja Developers) 7. “Black ki baat nahi kartey… par meri baat ho jayegi… 50 per cent aap yahan kara dengey.. bahar mey Dubai sey uthwa lengey who sab baat ho gai hai koi dikkat nahi hai (He doesn’t talk about black… but I have talked to him… it will happen… you give 50 per cent here… 50 per cent we will pick from outside, from Dubai… we have discussed everything. There is no problem)”-- Manvir Singh, senior manager – marketing, Mahagun Group 8. “Aapko kitna chahiye (How much do you want).” Between 30 and 40 per cent, says the correspondent. Lakhani reassures without batting an eyelid: “Theek hai … possession bhi time par ho jayega, cash bhi jitna bol rahe ho utna le lenge aapse … aur bataiye (Ok … you will get the possession on time … will accept cash to the extent you want …-- Sunder Lakhani, director, Lakhani Builders and Developers 9. “Sab black white aata hai sab 50–50 pe aata hai humare yahan (We accept 50-50 black-white money).” -- Amit Kanchhal, managing director, Kanchhal Group 10. “Jaise hoga waise kar lenge. Uski koi dikkat nahi. 60–40 ratio mein kar lena… Dubai mein ho jayegi (It will be done the way you want. There is no problem. You can do it at a 60–40 ratio. It will be done in Dubai).”” -- Dheeraj Sharma, director (finance), Investors Forum India 11. “Jitna bolenge kar lenge 40-50 kar lenge (Will adjust whatever you want. Will adjust 40–50 per cent).....Nahi koi problem nahi ayegi builder–buyer banane se pehle aap jitna marzi adjust kar sakte hain yaar (No, there will be no problem. You can adjust as much [black money] as you want before signing on a builder–buyer agreement).”-- Sunil Wason, president, Rudra Buildwell Projects Pvt. Ltd. “Aap mujhse expect kar rahe hain 100 main aapko 150 dene ko taiyar ho raha hoon. Only clarity honi chahiye jis aadmi se main baat kar raha hoon this man worth for this. That’s all (You expect from me 100, whereas I am ready to give you 150. What I want is clarity from the man I am talking to. Well, this man [is] worth for this. That’s all),”-- Mukesh Khurana, managing director; Rudra Buildwell Projects Pvt. Ltd. 12. “Ismein ho jayega ji aapka kareeb 35-40 yahi hoga (We can adjust 35-40 per cent [of black money] in this deal).” -- Ankur Jindal, COO (sales), SVP Builders (I) Ltd. 13. “Abhi forms aur receipts iss samay nahi kara sakta … theek hai main abhi aapse jo paise le raha hoon allotment ke time pe saara document ek saath karaoonga … fir allotment ke time wala rate hoga … uss samay launch ho chuki hogi property … main public mein khul ke ad de sakta hoon saare kaam kar sakta hoon main government does not stop me then abhi jo baat ho rahi hai uske kiye main koi I don’t want to create documentary evidence kyonki mere stakes bahut high (I can’t issue you any forms and receipts, Ok. Whatever money I am taking from you, I will issue all documents at the time of allotment... because otherwise the rate prevailing at the time of allotment will apply. By that time, the property would have been already launched. Then, I can advertise openly in public, I can do all the things … the government does not stop me. I don’t want to create documentary evidence for the deal we are discussing because I have very high stakes in it).” -- Mayank Pathak, managing director, Geoworks Realty Pvt. Ltd. 14. “25 per cent se zyada wo toh mushqil hai (More than 25 per cent of that is difficult)” -- N. Nandanandan Reddy, director marketing, Janapriya Engineers Syndicate (P) Ltd. 15. “Aapne aapne jo mere ko kaha wo main kar loonga. Meri taraf se commitment jo hai wo booking amount pe hi milega. Wo baith ke hi hoti hai (What you are telling me that I will do. I will make a commitment only when you give me booking amount. That will happen only when we sit).” -- Amit Handa, executive director, Shri Group (has reportedly quit Shri Group) 16. “Black bahut margin rehta hai black-white bahut margin rehta hai … 40 per cent bol raha hai na (There is a big margin for black. There is a big margin for black-white. You want to 40 per cent black).” -- P. Ramesh, executive director, Fortune Infra Developers 17. “Cash ka MoU alag sign kar lenge (We will sign a separate MoU for cash)…… “Tum meri meeting karwao phir main ek proposal doonga baad mein... Hundred and one aap safe rahoge isme aapko 50 flat de denge, hai ek mere paas scheme aur (You organize my meeting [with you boss], then I will give you another proposal after that. You will be 101 per cent safe in this. We will give you 50 flats. I have a good scheme)”—Anil Kumar, managing director, Sarvottam Group. 18. “Aap apni requirement poochhke paise lekar aa jaao karenge kuch na kuch (Come along with money after asking his requirement, then we will do something).” Rajesh Sharma, director, Plus Projects Pvt Ltd. 19. “Boss cash ka wahi apna 30-70 ka ratio hai (Boss, we work on a ratio of 30-70 for cash) -- Brijendra Kumar Agarwal, chairman, Godawari Developers 20. “Agar aapko cash investment zyada chahiye toh humara ek aur project 37 D mein wo humare plots hain (I you want to make more cash investment, we have another project in 37 D where we have plots).” “Wahan toh 40 bhi ho sakta hai wo hai usmein 29 plots 87 floors banenge … chhota hi hai usmein toh saara hi aapko de sakte hain 50 per cent rate aapka ho sakta hai (There even 40 per cent [in black] can be adjusted. There are 29 plots on which we can build 87 floors. It is a small project. We can sell the whole project to you and you can give 50 per cent payment in cash).” -- Rajeev Chopra, Chief Operating Officer, International Land Developers Pvt. Ltd. 21. “Usmein sahib ye hai ki 20-30 per cent aap de sakte ho (Sir, you can pay 20-30 per cent [in black]).” -- Ajay Gupta, director, Manglam Build Developers Ltd. 22. “Pehle aap 10 per cent booking jama karaiye uske baad mein aapko procedure batayenge (You first deposit the 10 per cent booking amount. After that, we will tell you what the procedure is).” -- Rajnikant Sharma, vice president sales, RG Group 23. “Karwa denge 20, 25, 30 per cent tak. Aapko kitna tak chahiye bataiye (Will adjust up to 20, 25, 30 per cent. Tell me how much you want).” -- Renu Singh, AGM Sales, ABW Infrastructure Ltd. (has reportedly quit ABW Infrastructure) 24. When asked about the black money component, “Twenty hai (It is 20 per cent).” -- Syed Shaman, general manager sales, Alpine Housing Development Corporation Limited 25. “40 per cent black maan ke chalo 60 per cent ek number main 60–40 karta hoon (Take 40 per cent as granted. I do it at 60–40).”-- Rahul Anand, marketing head, Antriksh Group 26. “No problem cash le lenge (No problem, will accept cash).” -- Ameenuddin, managing director, Archies Projects Pvt. Ltd 27. “How much you want to pay in cash for … because after what happen … whatever … After three years … and then they take out. Of course, I can show … and the 10% …. we can take in cash.” -- Siraj Mathur, managing director, Asten Realtors Pvt. Ltd. 28. “Aap kitna de sakte hain black. 50 per cent black lenge. (How much you can pay in black? We will accept 50 per cent in black)” -- Premanand Samal, CEO, BamaTech Developing India 29. “19 lakh lenge 50 lakh white (We will take 19 lakh [in cash], 50 lakh in white). 19 lakh cash.” -- Narendra Babu K., director marketing, Concorde Group (has reportedly quit Concorde) 30. “Ok, 60–40. It will be okay for you.”--- Trony Kurion, head sales and marketing, National Builders 31. “Dekh lenge 10 per cent se 60–40 jo hai (Will see whatever we can do, from 10 per cent … 60–40 per cent).”-- Atul Krishna Modi, director; Okay Plus Builders & Developers 32. “Ismein 30–70 ka ratio chalega 30 per cent aa sakta hai black (We will go by the ratio of 30–70. You can pay 30 per cent in black).”-- Sunil K. Rajput, managing director, Rajput Properties and Developers Pvt. Ltd 33. “Ninety per cent aap samajh kar chaliye aap 30 per cent chahte hain na toh 30 per cent tak kara denge 90 per cent maan kar (You take it 90 per cent as done. You want 30 per cent [to be paid in cash], I will get it done).”-- Khalid Masood, director, Shalimar Corp. Ltd. 34. “We like a … that means … like that for a B part … I think 20 per cent tak … because I have discussed toh [then] 20 per cent I can.” Any problem? “No, no nothing,”-- A.M. Anas, managing director, Travancore Builders (P) Ltd. 35. “Toh kitne per cent aap expect kar rahe ho (Then, what percent[age] you expect us [to adjust in black])?, Aur black ka hisab se jo baat aapse kari thi hum logon ne toh hum log 20 max to max 30 per cent tak hum kar sakte hain (and the discussion we [his subordinate] had with you about adjusting black, then we can adjust 20, max to max 30 per cent).”-- Chiropriyo Mukherjee, general manager, Vibgyor Housing Ltd.
Posted on: Thu, 27 Nov 2014 06:46:34 +0000
Trending Topics
Recently Viewed Topics
© 2015