The 8/11 demonetisation of large denomination notes, which has impacted the realty market in the state, has had a cascading effect on the stamps and registration department — a revenue deficit of about Rs 1,350 crore, due to a slump in real estate transactions, especially in the tech hub of Bengaluru. But Karnataka can derive a bit of consolation from the fact that the state is still ahead when compared to its neighbours — the cash-rich Telangana, Andhra Pradesh — both bustling with a real estate boom, Tamil Nadu and Maharashtra — that have had a bigger blow.
The newly formed Telangana state and the new Andhra capital Amaravathi which are seeing heavy infrastructure investment with real estate explosion, have had a hit with demonetisation. While Karnataka, whose figures are nothing to boast of — has met 86.57% of its revenue target for 2016-17 — but when compared to its neighbours, the state has something to cheer. Telangana’s revenue collection through property registration is at 80.33%, Andhra Pradesh has achieved just 68.71%, Tamil Nadu is no better at 66.11% and Maharashtra is at the bottom with 65.42%, according to figures consolidated by the stamps and registration department.
When you look at Karnataka as a standalone case, the stamps and registration department, which is one of the top revenue moppers for the treasury, has probably even beaten the figures that had dipped during the 2008 recession. Over the last 11 months, the department has collected Rs 6,977 crore as against an Rs 8,059 crore target.
Bengaluru, which earns 50% of the revenue for the department, is minus Rs 304 crore.
Inspector-general of registration and commissioner of stamps Manoj Kumar Meena told media, “Yes, we have a revenue deficit of more than Rs 1,000 crore. But our neighbouring states’ figures are worse than ours, especially Tamil Nadu and Maharashtra. Though there will not be any guidance value revision in the coming financial year, we are focusing on many optional registerable documents to up revenues.”
Take the figures of just four months after DeMo — November to February-end. While Bengaluru’s expected collection from stamp duty and registration fees was around Rs 2,008 crore, the recovery was Rs 1,703 crore. And in the rest of the state, all that the department could collect in these four months was Rs 590 crore vis-a-vis a target of Rs 1,037 crore.
* Karnataka registered 16.27 lakh documents and the revenue was Rs 7,132 crore while the target was Rs 7,298 crore. For 2016-17, 15.61 lakh documents got registered and Rs 6,976 crore was collected vis-a-vis a target of Rs 8,059 crore.
* Telangana registered 9.37 lakh documents and collected Rs 3,157 crore against a target of Rs 3,930 crore
* AP registered 12.43 lakh documents, and achieved a collection of Rs 3,167 crore while the target was Rs 4,610 crore
* In TN, 18.37 lakh documents were registered, and while the target was Rs 9.562 crore, collection was only Rs 6,321 crore.
Credits Bangalore Mirror