On the lines of demonetization and GST regulations, Modi-led Indian government is expected to take another major drastic step to cut back black money and benami property. Murmurs are getting louder that linking of Aadhaar Card with real estate transactions will be made mandatory very soon.
Over the last two to three years, there has been on and off buzz about the impending announcement of linking of Aadhaar Card with real estate property. The Delhi high court in October had sought a response of Unique Identification Authority of India (UIDAI) on a plea seeking the linking of movable and immovable property documents with their Aadhar card number before Nov. 20.
If the government goes ahead and implements the widely speculated move, it will be another big move against black money and one of the boldest reforms undertaken in real estate sector since past many decades. Let us understand how linking of Aadhaar number with real estate transaction will impact the market:
- Surge In Supply of Resale Property:
Experts feel that once the formal announcement comes, there will be sudden and initial rush to liquidate assets for fear up of coming under tax lens. The owners would be compelled to sell such property. It may not only result in surge in supply but prices of resale property might also dip for a short time.
Unaccounted property especially which owners keep vacant at prime locations will be marked and might return to the market
- Better Data Analysis:
Ever wondered why do we need more homes when there are endless ghost towns in NCR and other major cities? The linking of Aadhaar Card with real estate transactions will present a better picture of housing shortage and requirement for better decision making.
A nationwide database on the housing stock and availability will play a pivotal role in framing better and highly effective housing policies.
Land disputes are common in India. Our courts are overloaded with cases related to property ownership issues. Linking Aadhaar Card with property will ween out and eradicate the property ownership to a large extent and just might bring down the numbers drastically in the long run.
- Ease of Transactions:
Experts also feel that linking of Aadhaar Card will bring in more order in the sector which in turn will bring in ease of transactions and providing finance.
“The Aadhaar-property linkage will also provide some ease to procedures related to home buying such as home loan, property transaction, sale or purchase of property, etc, due to enhanced transparency. Since the entire linking process will be time-consuming, the government should give enough time to property owners,” ET Realty quoted Rajan Bhandelkar, President- NAREDCO Maharashtra, as saying.
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