Friday, 5 December 2014

ICAI: Real Estate accounts for major chunk of black money

Accounting regulator Institute of Chartered Accountants of India (ICAI) said real estate business accounts for a major chunk of black money and seeks urgent steps to check this menace.

ICAI, in a representation made to Finance Minister Arun Jaitley, suggested steps to improve business practices in the real estate sector to check flow of black money.

Today, black money is largely parked in the real estate sector. The real estate can't be governed only by rules and regulations, but demand and supply mismatch vis-a-vis final consumers has to be addressed,  ICAI said.

ICAI welcomed the government's move in the direction of real estate investment trusts (REIT) and foreign direct investment in the real estate sector. A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate.

The government must involve the ICAI to frame a policy to curb the black money menace as the ICAI has a big role to play in unearthing black money. Being a partner in nation building, ICAI is concerned with the menace of black money and would join all efforts made by the government to address the menace, it added.



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