Two illegal builders bought a property in one crore and made payment through two DD of Cental bank worth 50 lakhs each.  they have registered that property and paid total duty of Rs.6 lakh.  though their transaction seems fare but are they answerable to Income tax Department as to where from they have gathered this Rs.1 crore if they have no valid and legal source of earning.  AS theire job is to make builder flats and sell them.  is payment through DD has made their whole transaction white and leave no question to be asked from them.

Not necessarily

Buying that land will cause you a problem.

There is nothing called legal or illegal builders.

Legality or illegality is transaction or project specific.

IT authorities have all reasons to question source of payments.