Laundering through Real Estate

Real estate is not covered under the Prevention of Money Laundering Act, however it plays a significant role in integration of the funds into Indian economy.

Though Money Laundering Regulations don’t cover the Real Estate Sector Directly, it covers the transactions in the financial institutions. Investments in the Real Estate properties, Joint Ventures and Financing deals take place through the banking system.

Real Estate is a conduit of laundering the dirty cash. Corruption proceeds largely go into the land and real estate. The unstructured growth of this sector have not only affected the economic life and urbanization but have created environmental problems in various Indian cities. Since constructing the buildings require no skills besides networking in vendors, all the major politically exposed persons have interests in real estate