‘₹10.5 crore in cash...’: Viral post sheds light on 75-80% of farmland deals being run on black money in India

When a retired IAS officer showed up to close a ₹14 crore farmland deal, only a fraction of the money moved through official channels. The rest — a staggering ₹10.5 crore — changed hands in cash, counted for hours inside a bank with quiet complicity. This was no isolated case. Despite years of crackdowns, India's real estate sector — especially land transactions — remains a haven for black money. From benami ownership to underreported sale values, loopholes in the system continue to enable massive cash-based deals shielded from tax scrutiny.

A Reddit post recently reignited the conversation around black money in Indian real estate, particularly in farmland transactions. “The amount of black money in farmland deals is staggering,” wrote one user, sharing a firsthand account that quickly went viral.

“So recently I participated in a land deal… the other party was a retired IAS officer who was posted as the collector of our district. (The land was purchased 2 decades ago while he was serving). This land was of course in the name of a benami of some cousin of his,” the user wrote. The deal was pegged at ₹14 crore, but only ₹3.5 crore was transferred through bank accounts. The remaining ₹10.5 crore was paid in cash — counted over five hours in a private bank using three cash counting machines, while the bank manager made small talk.

“As I was a UPSC CSE aspirant before, I was very scared with the way these people were handling cash,” the user added. “They left I think a few crores in the bank and carried the rest in their car. My father termed them as ‘cheetha’ for counting each gaddi… I was shocked to know that there is almost 75-80% black money in land deals.”

The post drew hundreds of reactions, many echoing similar experiences across India.

“What else were you expecting?” replied one user. “In real estate and especially land, unwritten rule almost anywhere in India is: you pay circle rate in white, rest in cash/black… IAS or non-IAS, situation is the same.”

Another shared, “In Tier 2 cities… in farmlands, that [white component] could be as low as 5%. I have seen land deals way above ₹14 Cr in which the cheque amount was 7-7.5%, rest in cash.”

A third added, “Around Hyd there are some lands where the ratio is 97:3… a ₹1 Cr land might have a book value of only ₹3 lakhs.”

And a fourth summed up the sentiment: “This is why Black Money will never go away from India. NEVER… It’s a Win-Win Situation for both parties.”