Real Estate Brokers are the Main Source of Black Money

I am living in Mumbai for two years and a normal banker with technical end. Here I have seen that real estate’s prices are so high and seem to be managed by virtual pricing some time. Simply there is no demand some time but prices do not get decreased. For buy or getting any property a person needs to approach a broker and there is no doubt it is a much needed service when you don’t want to get involved in a lot of paper work or not aware enough of these kind of things.

But the question is: Why I have said the brokers are the main source of black money and how can I assume these things.

Lets share one of my experiences. I was looking for a flat on rent and I was thinking to get this by brokers because when I searched multiple website of real estate I have found they have been filled by brokers mostly, so there was no option left for me. When I approached them, they showed me different properties, according to my capacity. And I was happy with the service a man has provided, though he was not even a graduate. When I asked for the service charge, I was asked to pay 2 months’ rent to the broker as a service charges and also all the documentation fees which was already more than the real cost of documentation. They had also charged one month rent from the flat owner for the service. In short for an eleven month agreement he charged 3 months agreement as his fee. And insisted to get only in cash, in short he does not want to show this as his income and save tax. Story starts here, after eleven months; tenant needs to pay one month rent again to the same broker for the renewal of the agreement and also the documentation charges and in cash. In short you can assume if a broker only sells his product in form of rent, how much black money he generates and there is no worth for those services, the amount they charged, and for next year without any service.

For selling properties, they charge two percent or more in form of black money. The black money is also invested in properties and converted into white money by this way. So they are also not helping out the country at all and becoming the agents of bad only.

 I feel very bad, when I see that government is imposing too many taxes on common man, whose income is not enough to survive now, and he is paying taxes regularly. Government is not doing or regulating these kinds of practices, because many politicians money is also involve here. In my view there must also be a regulating authority for this, so that property rates could not be managed by money makers only and needy people could get what they deserve on their white money.
I have made a page on facebook as ‘No Broker Flats Mumbai’ as an initiative to provide a platform to people who wants to directly interact with each other. I think people must get come out from their sleep and start fighting for their rights.