Digital Bidding Systems Proposed to Combat Black Money in Indian Real Estate

A new research proposal, spearheaded by Nitin Lodha, a prominent eCommerce consultant and business strategist at Chitrangana, has introduced the potential of digital bidding systems to address black money circulation in India's real estate market. This proposed solution aims to bring much-needed transparency, accountability, and compliance to the sector, where unreported cash transactions continue to persist despite several government interventions. Estimates suggest that up to 50% of high-value property deals involve unreported cash payments, exacerbating issues of tax evasion and corruption.

Despite measures like demonetization, the Real Estate (Regulation and Development) Act (RERA), and the Goods and Services Tax (GST), black money flows remain deeply entrenched in the real estate market. Lodha's research highlights how digital bidding systems could drastically reduce these unregulated cash flows by ensuring that property transactions are transparent, traceable, and fully compliant with tax and regulatory standards. Inspired by successful implementations in countries like Ireland and South Africa, where such platforms reduced transaction times by up to 50% while improving transparency, Lodha envisions a similar impact for India.

The proposed system would mandate the use of real-time, competitive bidding platforms, ensuring that property sales reflect true market values, thereby eliminating the artificially low prices that often encourage black money deals. The research recommends a phased rollout, beginning with pilot programs in major urban centers such as Mumbai, Delhi NCR, and Bengaluru, where digital adoption is already advanced.

However, the research also acknowledges challenges, particularly in rural and semi-urban regions, where limited digital infrastructure may slow adoption. Lodha's proposal suggests offering state-level incentives, such as tax breaks and regulatory benefits, to encourage both developers and buyers to adopt the system. Additionally, public awareness campaigns would be necessary to educate stakeholders on the benefits of digital bidding platforms in promoting transparent and compliant property transactions.

Preliminary data suggests that the implementation of digital bidding systems could significantly reduce black money involvement in real estate transactions. By mandating that all property deals occur through a transparent, competitive process, the system could curb unreported cash transactions and foster a more formalized and transparent real estate market across India.

Chitrangana.com
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Chitrangana.com is India's leading eCommerce consultancy, specializing in providing strategic solutions and digital transformation services to businesses across various industries. With over three decades of experience, Chitrangana.com has been at the forefront of driving technological advancements in eCommerce, helping businesses leverage cutting-edge tools to enhance their operations, increase profitability, and achieve sustainable growth.

The consultancy offers a wide range of services, including market strategy development, digital innovation, consumer behavior analysis, and implementation of advanced technologies like artificial intelligence, machine learning, and blockchain. Chitrangana.com has worked with top corporations, government bodies, and startups, offering tailored solutions to meet the unique challenges of each client.

As a leader in eCommerce consulting, Chitrangana.com is committed to fostering innovation, promoting transparency in business processes, and helping companies navigate the digital economy successfully. The firm is well-known for its expertise in driving industry transformation, backed by extensive research and practical solutions, such as the proposal for digital bidding systems to address black money in India's real estate sector.

For more information, visit www.chitrangana.com.

This release was published on openPR.