One
More Reason
In my yesterday’s blog , I had suggested that Aadhar should be linked
to all “ Properties “ – and not merely to “ Property Deals “
Today’s DNA carries
following news :
“ Post demonetization, Bitcoins new ‘ black ‘ in property
market “
In the last one year, the price of one Bitcoin, world’s first
and largest crypto-currency, which is still not a recognised legal tender in
several countries, including India,
has been rising steadily, having risen almost three and a half times since
October last year. One Bitcoin
is worth about Rs 5.5 lakh
now.
However, what many do not know is that
the “illegal”
currency is already gaining ground in the country. Post-demonetization, which
made hoarding of vast amounts of cash difficult and tricky proposition,
different types of crypto-currencies have replaced the “black” portion in property deals.
Investigation
conducted by DNA, which included attending several meetings where crypto-currency
was being hard-sold, especially as an investment option, shows that crypto-currency is fast
replacing the cash — read black — component in real estate deals.
“Instead of the cash
part, many sellers are now
opting for crypto coins for property deals and this is especially true
of NRIs, who can, with a few keystrokes, move this money abroad,” said a real
estate dealer. He also added, “Many domestic sellers are also accepting these crypto coins instead of
cash, as it is easy to handle and also, unlike cash currency, it
appreciates in value almost on a daily basis.”
Moreover, crypto
currency it is also being offered as an investment option — with real estate
brokers, who left the real estate market due to the on-going slump, offering
deals to gullible investors looking to make easy money in closed-door meetings.
To make Bitcoins
more acceptable, these persons are also part of a drive to push them through
multi-level marketing (MLM) process.
The number of realty brokers, who are now part of this racket, is
huge.
Almost 70 per cent of erstwhile agents have given up the old
trade. They have joined the closed group offering crypto-currencies. They lure
investors on the assurance of returns of over 300 per cent in months.
“With a severe downturn in real estate sector,
brokers have either shut shops or moved to other businesses. As crypto-currencies
are attracting speculators with promise of astonishing returns. Speculation is
that crypto-currencies are replacing
cash component in real estate and even high net worth individuals are
pooling into groups and are investing in these currencies and channelling them
into real estate,” said Venket Rao, founder & CEO, Intygrat Business
Advisory (P) Ltd.
Sources involved in the trade told DNA that, in India, crypto-coin
exchanges have been adding over 2,500 users a day and have now reached five lakh
downloads.
“Have you seen
Bitcoin returns in last one year? We are doing it in ATC, one of the popular
local crypto-currency. An investor has to deposit minimum Rs 40,000 as
membership fee for entering a group and getting a digital wallet issued. Now a
new member needs to invest some amount, which the member can check in the
wallet as code money in London exchange NOVA”, said Kapil Kumar, a
Faridabad-based former property dealer.
But, isn’t it difficult to trade in Bitcoins ?
“You can easily buy Bitcoin with
Indian currency from any online banking channel or through NEFT/RTGS.
Selling Bitcoin is just as easy, you will receive INR directly
into your bank account. All banks that have IFSC are currently
supported”, claimed Unocoin, an Indian cryptocoin exchange.
Incidentally, concerned over the inhibited trade in the new-age
currency, the Supreme Court on November 13 asked the government and its
agencies, including SEBI, Income Tax Department, RBI and Enforcement
Directorate (ED, on how
they planned to regulate the crypto-currencies.
A Bench of Chief Justice of
India Dipak Misra and Justices AM Khanwilkar and DY Chandrachud noted, “... Emerging trend of crypto money, if
unchecked and unregulated, is a threat to exchequer’s money and financial
sovereignty of the country.”
How will my yesterday’s suggestion stop the
use of Bitcoin in property deals ?
SIMPLE
·
Each and every property in India will be assigned unique 3 word code using www.What3Words.com
·
This 3 word
code itself will be linked to the Aadhar Number of the Property Owner
·
All bank accounts are , in any case , linked ( or will soon ) with Aadhar
Numbers
·
That means Bank Account ( through Aadhar ) get linked to each and
every “ property “ –
and therefore ,each and every “ Property Deal “ as well
·
Amount for which a “ Property “ gets sold by
the seller ( as recorded in the property deal ) will get credited into the “ Aadhar-linked
“ bank account of the seller
·
Amount for which the buyer bought that property gets debited from
Aadhar-linked bank account of the buyer
·
Since our banks do not accept
deposits ( or initial creation of a bank account ) in Bitcoin , nor lend (
loans ) in Bitcoins
, all payments made from and received in bank accounts , can only be in RUPEES
This would eliminate
CASH or BITCOIN from property deals
I hope Shri Arun Jaitleyji
find time to read this :
Aadhar : The Omnipresent [ 22
Nov 2017 ]
23 Nov 2017
www.hemenparekh.in
/ blogs
