Firstly, investing in these bonds makes sense if you have sold a property and have accrued long-term capital gains. Overall, if you invest your gains in the REC Bonds you are not required to pay tax to the government. This is the main reason why one should consider investing in the REC Bonds. This is especially true for high net worth investors, who are in highest tax bracket.
Secondly, considering REC Bonds from a financial planning perspective, it is a low-risk asset class, but still, an investor with a high-risk profile can invest in them because the returns are tax-free after 3 years. Thus the overall post-tax returns are quite high. This enables an investor to not only earn tax-free income but also ensure the safety of capital.