The Enforcement Directorate (ED) has provisionally attached properties worth INR 97.79 crore belonging to businessman and actor Shilpa Shetty's husband Raj Kundra under the Prevention of Money Laundering Act (PMLA) in connection with a Bitcoin investment fraud case.

The attached properties include a residential flat in Mumbai's upscale Juhu area currently in Shilpa Shetty's name, a residential bungalow in Pune, and equity shares in Kundra's name.

The ED action comes as part of its ongoing money laundering investigation into multiple FIRs registered by the Maharashtra and Delhi Police. Back in 2017, when Bitcoin was attracting hordes of investors on the promise of massive gains, some individuals, including Amit Bhardwaj, Ajay Bhardwaj, and Mahender Bhardwaj, started the Gain Bitcoin Ponzi scheme through a company called Variable Tech Pte Ltd.

Earlier searches by ED found that Raj Kundra received 285 Bitcoins from key accused Amit Bhardwaj to set up a Bitcoin mining farm in Ukraine. These Bitcoins were allegedly sourced from proceeds of crime collected by Bhardwaj. The deal did not materialize and Kundra is accused of holding Bitcoins worth over INR 150 crores now.

This is the second attachment in the case, with ED having previously attached properties worth INR 69 crores. Arrested accused Simpy Bhardwaj, Nitin Gaur and Nikhil Mahajan are in judicial custody, while Ajay Bhardwaj and Mahender Bhardwaj are wanted.

The real estate sector, globally, is experiencing disruption from new technologies just like many other industries. One such emerging technology that is having an impact is cryptocurrencies, particularly Bitcoin. While still in the early stages, Bitcoin and other cryptocurrencies are beginning to be used for real estate transactions globally.

As per current rates, a bitcoin can cost around INR 51 lakh. Bitcoins are not legal tender but have grown in popularity as an alternative means of payment for real estate deals. Transactions using cryptocurrencies offer certain advantages over traditional methods.

Bitcoin transactions are secured by cryptography, and once completed, are highly resistant to fraud. This added layer of security significantly reduces the risk of fraudulent alterations to payment or property records. And because all parties involved in a Bitcoin transaction ? including a home buyer, seller, real estate agent and other relevant parties in a real estate transaction ? would have access to the blockchain, they can collectively validate the property ownership and transaction details. By eliminating ambiguity and providing verified ownership records, Bitcoin can prevent title fraud ? a scam whereby criminals sell properties that they do not rightfully own.

The potential for speed and cost savings over more conventional ways makes adopting cryptocurrencies in real estate transactions one of their main advantages. In some cases, cryptocurrencies are less expensive than conventional techniques. For instance, wire transfers can be costly and involve both sender and recipient costs. Cryptocurrencies are a desirable option for real estate transactions since they often have no or very cheap transaction fees.

The ease with which ownership may be transferred using a digital wallet with bitcoin makes it simpler to buy and sell real estate investments. This ease of transfer has the potential to boost the liquidity of real estate assets. A wider group of investors may find real estate investments more appealing as a result of the improved liquidity.

International real estate deals may also be made easier by cryptocurrencies. International transactions through conventional techniques can be difficult, expensive, and need additional documentation. Regardless of where the parties involved are located, transactions may be executed swiftly and efficiently with cryptocurrency. International investors may find it simpler to buy and sell real estate investments as a result.

However, there are still some challenges holding back widespread adoption of cryptocurrencies in real estate. The volatility of cryptocurrency values is one of the primary difficulties, as the worth of investments can fluctuate sharply. Regulatory issues are another hurdle, as cryptocurrencies are still being regulated by most governments and there is uncertainty around rules. Adoption has also been slow, with only a small fraction of real estate deals currently involving cryptocurrency despite its growing acceptance.

In India specifically, real estate transactions in cryptocurrencies like Bitcoin are unlikely in the near future. Local market rates and taxes are rupee denominated as per law, and the banking system is still sceptical towards virtual currencies.

Overall, while cryptocurrencies offer advantages for speed, security and international deals, their volatility and regulatory ambiguity need to be addressed for larger scale impact on real estate. Still, their growing use globally shows they may play a role over the long run.