With the Model Code of Conduct (MCC) in force in view of the upcoming general elections in the country, many land and property deals are on hold in Ahmedabad.
Around 50% of the deals in lands and plots are on hold for a couple of months, according to sources. This is because huge cash transactions are involved in such deals. These deals are difficult to implement under the strict surveillance situation.
Since land prices, as per ‘jantri’ rate (government-decided rates) are much lower than market prices, realty deals involve huge amounts of cash transactions, said a source in the realty sector.
As elections will be over in around two months, developers prefer to wait it out. Moreover, developers are giving longer payment terms to buyers these days when it comes to large land deals.
Investors too are worried to get into realty deals in these times. However, residential projects are not impacted as these usually involve cheque payments and home loans.
EC mandate
The Election Commission (EC) has instructed agencies like the CISF, police authorities and officials at airports to immediately report to the Income Tax (IT) department, if anyone is found carrying cash over Rs 10 lakh, or gold of more than 1 kg (in bullion).
The IT department has to take necessary action if they don’t get a satisfactory explanation from the person carrying the cash or gold.
The EC has issued detailed instructions to police, railways, airports, the IT department and other enforcement agencies to keep a keen eye on the movement of liquor, cash, jewellery or gold, or any other expensive metals, drugs, and gifts, among other items. The intention is to prevent misuse of these items to influence voters.
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