1. Black money crackdown: Aadhaar card property linking next target of Modi government to curb illegal wealth

Black money crackdown: Aadhaar card property linking next target of Modi government to curb illegal wealth

Housing Minister Hardeep Puri has said that linking property with Aadhaar would go a long way in sucking out black money from real estate and also help in crackdown on benami property.

By: | Updated: November 22, 2017 1:44 PM
Linking property with Aadhaar, Housing Minister Hardeep Puri, Modi government, curb black money, curb benami transactions, real estate, homebuyers, Though the primary property market was brought under regulatory framework post RERA, secondary market transactions were not included in RERA’s purview.

After demonetisation, the Modi government has taken several other steps in a bid to curb black money. And now linking immovable property transactions to Aadhaar seems to be on its agenda. Although the government has from time to time denied market rumours that it is going to link Aadhaar with property deals soon, but Housing Minister Hardeep Puri has hinted at its possibility. Talking to a TV channel on Tuesday, he said that he has no doubt that the linkage would happen and that “linking property with Aadhaar would go a long way in sucking out black money from real estate and also help in crackdown on benami properties.”

It is clear now that like many other things such as PAN card, bank account and mobile number, Aadhaar may be required to be linked with property transactions too sooner or later. And whenever that happens, that will be beneficial for real estate and homebuyers.

Industry experts say that the seriousness and determination of the government in its fight to curb black money were reiterated after Union Housing Minister yesterday indicated that linking Aadhaar numbers will be mandatory for property transactions going forward.

“After demonetization, this is definitely a next logical move towards restricting the flow of black money, as real estate transactions have in the past been notorious as an avenue to park unaccounted funds. Also, linking real estate transactions with Aadhaar numbers will make detecting and discouraging benami transactions much easier. Since the government is planning to bring all types of property transaction under the purview of Aadhaar, secondary market transactions will now come firmly under the regulatory lens,” says Anuj Puri, Chairman, ANAROCK Property Consultants.

Though the primary market was brought under regulatory framework post RERA, secondary market transactions were not included in RERA’s purview and “with transactions in this segment getting linked to Aadhaar numbers, we will probably see a further deal deceleration in this segment. More than ever before, real estate will now become a decidedly end-user driven market,” informs Puri.

Some experts are of the view that apart from curbing black money, this move would also increase transparency in the sector. They say that the Modi government’s move to track unaccounted money received quite a bit of criticism, especially since it excluded real estate transactions which are believed to be the biggest mode for parking black money. Linking Aadhaar to property deals is a positive step towards increasing transparency in the real estate sector.

“To avoid paying higher taxes, a number of properties were registered at lower prices than the actual transaction value. However, now with Aadhaar already being linked to bank accounts, mobile connections, PAN cards, subsidy accounts, etc. the proposed linkage to property deals is a welcome step towards curbing black money transactions in real estate. With the recent policy changes that have impacted the sector considerably, most investors have already disappeared and the end user dominates the market today. The sector has slowed down quite a bit in the last few quarters and with this move, the overall time for revival, both in terms of sales and price appreciation, would lengthen,” says Divya Seth Maggu, Associate Director, Valuation & Advisory Services, Colliers International India.

  1. R
    Reader
    Nov 22, 2017 at 5:59 pm
    The biometrics-based Aadhaar program is inherently flawed. Biometrics can be easily lifted by external means, there is no need to hack the system. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can CLONE your fingerprints and iris images without your knowledge, and the same can be used for authentication. That is why advanced countries like the US, UK, etc. did not implement such a self-destructive biometrics-based system. If the biometric details of a person are COMPROMISED ONCE, then even a new Aadhaar card will not help that person. This is NOT like blocking an ATM card and taking a new one.
    Reply
    1. R
      Reader
      Nov 22, 2017 at 5:58 pm
      UK’s Biometric ID Database was dismantled. Why the United Kingdom's biometrics-linked National Identi-ty Card project to create a centralized register of sensitive information about residents similar to Aadhaar was scrapped in 2010?? The reasons were the massive threat posed to the privacy of people, the possibility of a surveillance state, the dangers of maintaining such a huge centralized repository of personal information and the purposes it could be used for, the dangers of such a centralized database being hacked, and the unreliability of such large-scale biometric verification processes. The Aadhaar program was designed in 2009 by mainly considering the 'Identi-ty Cards Act 2006' of UK, but the UK stopped that project in 2010, whereas India continued with the biometrics-based program. We must think why the United Kingdom abandoned their project and destroyed the data collected. (Google: 'Identi-ty Cards Act 2006' and 'Identi-ty Documents Act 2010' )
      Reply
      1. R
        Reader
        Nov 22, 2017 at 5:58 pm
        The US Social Security Number (SSN) card has NO BIOMETRIC DETAILS, no photograph, no physical description and no birth date. All it does is confirm that a particular number has been issued to a particular name. Instead, a driving license or state ID card is used as an identification for adults. The US government DOES NOT collect the biometric details of its own citizens for the purpose of issuing Social Security Number. The US collects the fingerprints of only those citizens who are involved in any criminal activity (it has nothing to do with SSN), and the citizens of other countries who come to the US.
        Reply
        1. R
          Reader
          Nov 22, 2017 at 5:57 pm
          A centralized and inter-linked biometric database like Aadhaar will lead to profiling and self-censorship, endangering freedom. Personal data gathered under the Aadhaar program is prone to misuse and surveillance. Aadhaar project has created a vulnerability to identi-ty fraud, even identi-ty theft. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of impersonation, especially online and banking fraud. Centralized databases can be hacked. Biometrics can be cloned, copied and reused. Thus, BIOMETRICS CAN BE FAKED. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can clone your fingerprints and iris images without your knowledge, and the same can be used for authentication. If the Aadhaar scheme is NOT STOPPED by the Supreme Court, the biometric features of Indians will soon be cloned, misused, and even traded.
          Reply
          1. R
            Reader
            Nov 22, 2017 at 5:57 pm
            The US Social Security Number (SSN) card has NO BIOMETRIC DETAILS, no photograph, no physical description and no birth date. All it does is confirm that a particular number has been issued to a particular name. Instead, a driving license or state ID card is used as an identification for adults. The US government DOES NOT collect the biometric details of its own citizens for the purpose of issuing Social Security Number. The US collects the fingerprints of only those citizens who are involved in any criminal activity (it has nothing to do with SSN), and the citizens of other countries who come to the US.
            Reply
            1. C
              Canbkrao
              Nov 22, 2017 at 3:24 pm
              Iris a right step to be implemented to curb black money.A committee consisting of highly reputed talented CAs be formed to suggest Govt.to find any other alternatives for this proposal.
              Reply
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