In Hyderabad, for payment in big notes, even land costs more

By | November 16, 2016

AT THE site of a residential plot at Mokila on the outskirts of Hyderabad, three real estate agents and seven buyers were making complex negotiations. “Two of our agents took cash advances of Rs 80,000 and Rs 1 lakh from two buyers on November 6. The money was for paying contractors for laying roads and sewage lines, so it was not deposited in bank. Now those Rs 500 and Rs 1,000 notes are useless,” said Janardhan Reddy, a partner in the project.

“Technically, we did not receive the money so we didn’t reserve the plots to the two buyers who paid the advance to the agent,” Reddy said. “But the buyers wouldn’t take back the cash and insisted we go by the earlier agreement – 50 per cent payment in cash [out of Rs 9 lakh for a 200-sq-yard plot].”
On Thursday, the partners told the buyers they will accept cash in demonetised currency but the rate per sq foot would go up. It was a kind of extra charge for the trouble of finding ways to deposit the cash in banks. “Instead of Rs 4,500 per sq yard, the new rate for cash buyers is Rs 6,000 per sq yard. Not only did the two buyers agree, five others who had loads of cash in hand also booked plots at higher rates,” one of the partners said.
Such deals have been struck at various plots on Hyderabad’s outskirts. “Many buyers are actually grateful to pay at higher rates with cash they couldn’t have got rid of otherwise,” one agent said.

Source: Indian Express