Yesterday, the Union Housing Minister Hardeep Puri hinted at mandatory Aadhaar linkage with property transactions in an interview to TV channel ET Now. Here’s what some of the industry leaders feel about the same
— Sunaina Kohli, Assistant Vice President, House of Hiranandani —
It could be a game changer for the industry as a whopping 60 per cent of the black money in the country is pumped into immovable assets in the form of both residential and commercial properties. With Government now betting on Aadhaar as a fix to ensure accountability and transparency in real estate transaction it will help crackdown on benami properties and track transactions.
— Om Ahuja, Adviser & Ex CEO – Brigade Group, Residential —
Linking Aadhar with property will be revolutionary step by NDA Government. Transparency in the sector will immensely improve and bring institutional interest in the real estate sector. In India few states have already implemented property ID card, which has benefited local government in improving tax collection and reducing litigations. With linking of Aadhar number, this will further improve the tracking process and bring complete authenticity of ownership. This will improve real estate prices in the coming years and help in enhancing bank credit opportunities. Negative implication can be many benami properties currently registered under POA or in the name of other people will get exposed. This will have short term pain in terms of property prices correcting in short term.
— Abhilash Baldota, Strategic Head Marketing, Sterling Developers —
I am confident the real estate fraternity would welcome measures that aim at increased transparency, enabling regulation and bettering performance in this vital sector that contributes heavily to our nation’s GDP. Across economies of the world real estate plays a vital cog in it’s socio-economic progress. The first term of the Namo Govt. has seen big reforms/measures being implemented RERA, Demonitisation, GST, PMAY Scheme, Amendments to Insolvency & Bankruptcy Code, Amendments to Benami Transactions ( Prohibition) Bill and now Aadhar linkage to Property transactions. While all of this has a long term view in mind, I hope equanimity is maintained for all stakeholders, robustness and ease is seen in the working of the system, a strong and swift judiciary is in place to logically conclude matters thereby ending with ‘India’ progressing. As an industry professional I see this as History in the making.
— Gaurav Bhatia, Head Sales & Marketing, Sobha —
Linking Aadhaar to properties is another regulation on the lines of RERA and GST that is aimed at bringing in transparency and accountability in the industry.
While the objective of RERA is to establish a regulatory system for the sector’s growth, GST aims at easing the overall business and making it hassle free. Linking Aadhaar to properties is a move against allegations that a majority of black money is pumped into immovable assets. This move will, to a large extend, mend the trust deficit ingrained in the minds of customers. This will improve the tracking system and help curb benami dealings. It will also provide a critical data base on the supply-demand, sales and pricing trends in real estate. As a company known for the best business practices and transparency, SOBHA Limited welcomes this proposed move of the Union government.
— Pearlene Rodrigues, Head – Branding & Marketing, Shriram Properties —
Making the Aadhar card mandatory in property transactions will have huge implications for the Real Estate sector and experts are optimistic that this measure will boost transparency in the sector. This will also enable in developing a critical data base on the supply-demand, sales and pricing trends in real estate. Moreover, a price rationalization in real estate has also been forecasted as an after effect of linking Aadhar to property transactions, as those who have invested in Benami property will rush to disinvest.
Coming to the adoption of block chain technology, each property will have its unique electronic identity. Those interested in purchasing property or lending money against such security can get to know about the history of the property, including the chain of ownership etc. This will automatically not just reduce the risks involved in dealing with property, but will also reduce the need of a third party, thus making this entire process streamlined and safe.
In future, through blockchain technology , a digital record of transactions can be created, and data records with audit trail can be instituted. With this, governments, banks, agents, buyers and sellers can easily access the chain of data pertaining to any property. This will reduce fraud and ensure that Benami transactions are eliminated.
Thus, one can definitely say that the Government’s step to link Aadhar to properties is the stepping- stone in implementing blockchain technology to the real estate sector.
— Cyriac Joseph, Senior Vice President – Marketing, Vaishnavi —
It is a progressive move that will help to fix accountability and ensure transparency. It will be beneficial in eliminating the scrounge of black money from real estate transactions while also simultaneously aiding the crackdown on benami properties.
— Manjusri Suuraj, Head of Sales & Marketing HM Constructions —
In a bold move to flush the ecosystem clean and to create a more evolved industry, for the first time ever the real estate industry is undergoing a metamorphic change with the introduction of demonetization, RERA & GST. The current move of linking the Aadhar card to the real estate transactions is an anticipated extension of the demonetization drive making the decision of curbing the black money into the markets, more tightened. This step is bound to bring in positive changes. Though the markets have witnessed a slowdown in the last few quarters, in the long term this is a welcome move considering the benefits of this changes thereby making the industry a more organized, transparent, safe, robust and a good level playing field which will become more customer centric and value focused.