Seems that builders in Mumbai are having to borrow money at 2-3%/month, that is 24-36%/year, from private investors and Non Banking Financial Companies to stay afloat as banks have stopped lending to builders. Banks have been instructed by the Reserve Bank not to over expose themselves to the property sector as prices have risen to unbelievable levels. The black money in the real estate sector is fueling inflation and the RBI has already been forced to raise rates 10 times, the last time by 0.5%. Rising rates of home loans is deterring buyers but builders are refusing or unable to reduce prices of properties because they paid unrealistic prices to acquire land and the high prices of commodities raised building costs. To show that they want to control black money state governments are raising " circle rates " which is the presumed official rate of property according to its location. This means that no matter what the actual price of sale the government decides the minimum price and charges stamp duty and registration charges accordingly. Since these charges are anywhere up to 12% of the price people are reluctant to pay such taxes to enable criminal politicians and thieving, parasitic civil servants to lead their lives of debauch. The only way to make all property transactions transparent is to raise rates till prices come down by 70% and reduce stamp duty to 1% as in other countries. This the criminals are unwilling to do because this will reduce the quantum of loot. The result is that the property market is seizing up and it will take one distress sale to start a panic fall in prices. We wait with eager anticipation for the fun and games to begin.