PUNE: The state department of registration and stamps has registered a 45% dip in property registrations in the state in the last two days, following demonetisation of Rs 500 and Rs 1,000 notes.
While the daily normal average registration across the state is 8,000 documents, the numbers fell to 4,273 and 3,930 over the last two days. On November 8, registrations were at 7,175. A three-day weekend from Saturday to Monday (Guru Nanak Jayanti) means the registration department will have to wait until Tuesday to return to normal.
All divisions in the state noted a nearly 40-50% fall in registrations with Nashik division recording the maximum dip of 55%. Amaravati, Aurangabad, Nagpur and Latur saw an around 50-51% fall, Thane a slump of 44% while registrations in Pune and Mumbai were hit by 36%, according to statistics provided by the department.
State inspector general of registration and controller of stamps N Ramaswami said with 98% of funds transfer being online, the decrease in registrations was surprising. “The stamp duty and registration of property documents are generally online so there should not have been much effect because of the announcement. The only issue was the amount to be paid in cash for document handling charges, but that too was allowed to be paid by demand draft. However, in two days a slump was noticed in all divisions of the state,” he said.
Other officials said the sudden dip can be attributed to some “terms” between buyers and sellers or some involvement of a cash component in the banned denominations. Buyers admitted that in most cases some cash was paid to builders before registration, usually in denominations of Rs 500 and Rs 1,000. “We decided to wait till we withdraw the new notes of Rs 2,000 to pay the builder,” said a citizen who was scheduled to register a property on Wednesday. An IT professional from Hyderabad, who was to book a house, had readied cash of Rs 5 lakh from friends and relatives to be paid to the builder in denominations of Rs 500 and Rs 1,000 on November 8. But after the announcement no one was willing to take it back and he can’t pay the builder as well. “I am stuck with the amount,” he said.
Credits ET Realty