Hyderabad: After IT raids, a slowdown in the construction activities of commercial and residential complexes in the Old City of Hyderabad is observed. It is understood that cash flow has been hampered in the Old City. The owners of Benami properties are making an attempt to dispose of their properties as early as possible. They are doing this to save themselves from being penalized by IT Dept.
People are worried that IT Dept. might target fake companies soon. So far, IT Dept. had not taken any action since it was under the impression that the Old City is inhabited by poor persons.
Beenami traders thought Old City to be a safe citadel for their wealth. It is reported that a noted businessman belonging to majority community invested a lot of money through fake companies and enjoys the support of politicians. It is also reported that persons who have political patronage are selected to run such fake companies. The reason is that political support makes it possible to continue construction activities without following the relevant rules which results in generating huge amounts of profits.
After the IT raids, people have started feeling that the interest of the investors is only to get extra income. If any loss is incurred, common people suffer who purchase properties without having full knowledge.
Authentic sources revealed that IT Dept. is collecting information about the owners of uninhabited commercial complexes.