Land transactions, a catchment sector for unaccounted currency, have seen a sudden freeze following the government’s ban on high denomination notes to clamp down on black money, but, pacts involving joint ventures (JV), joint development (JD) or corporate land divestments are also likely to see an impact.
“JVs, JDs and corporate divestments are all quite institutionalised, with little or no cash involvement. However, those carrying out direct land deals will doubtlessly suffer — especially when it comes to farm land transactions, which tend to involve significant cash component. Land transactions slowing down or failing to materialise could lead to a bigger cash crunch for many developers and force them to sell their land at lower rates,” said Anuj Puri, chairman, JLL India.
Source: Economic Times