Positive side of Black Money - Whether did it save our economy from recession

In an interesting article published in Times of India, it is revealed that black money is a boon for Indian economy in the era of worldwide recession.

As per the article the followings are positive sides of negative aspects in India

1. A large proportion, often half, of almost all home purchases is paid in black money. If a house is sold for Rs 100 lakh, the official registered value will typically be only Rs 50 lakh, with the balance paid under the table in cash. A bank may loan Rs 50 lakh, covering the entire formal price. However, the owner's contribution is not zero: he has paid Rs 50 lakh in black. To preserve that black investment, he will keep paying his installments even if house prices dip.

2.  In India legal system is so slow that borrowers have little fear of even their mortgaged homes being seized, let alone other assets. Yet, they do not default, and India's financial system remains strong.

(For detailed article - click here)