BENGALURU: The stamps and registration department faces a formidable task to meet its ambitious revenue target of Rs 26,000 crore for the financial year 2024-25. As of Feb 28, collections stood at Rs 20,186 crore, leaving a daunting Rs 5,800 crore to be amassed in the final month.
Officials cite sluggish real estate transactions as a contributing factor for the revenue shortfall but attribute the larger impact to technical glitches hindering the generation of encumbrance certificates (ECs) and the recent mandate requiring e-khata for registrations, both of which have significantly slowed transactions.
Bengaluru Urban led collections with over Rs 13,000 crore, followed by Bengaluru Rural with over Rs 1,200 crore. The remaining 29 districts contributed over Rs 5,000 crore, but with just weeks left for the end of the fiscal, authorities are scrambling to boost revenue inflow to meet the target.
A comparative analysis with the previous fiscal suggests a mixed trend. The state collected Rs 17,491 crore by the end of Feb in 2023-24, meaning this year’s collections are ahead by over Rs 2,500 crore. However, the department had collected only Rs 2,800 crore in March last year and if that trend holds, then it will fall short of this year’s target. Officials from sub-registrar offices remain sceptical, estimating a possible March collection of Rs 2,500 crore to Rs 3,500 crore.
The mandatory e-khata regulation, enforced in Oct 2024 to curb illegal registrations, has particularly impacted Bengaluru. In the ongoing budget session of the legislature, BJP MLA Vedavyas Kamath questioned the govt about whether property registrations declined in the city due to this mandate. In response, revenue minister Krishna Byre Gowda said, “Revenue from illegal registrations, has decreased, but there has been no loss of income to the govt from legitimate property registrations.”
However, revenue department data indicates a clear shift. In the first six months of the fiscal (Mar to Sep 2024), when e-khata was not mandatory, the department collected Rs 13,811 crore in stamp duty and registration fees. In contrast, collections from Oct 2024 to Feb 2025 dropped to Rs 6,375 crore, suggesting a slowdown following the new requirement.
Despite challenges, Bengaluru Rural remains a crucial revenue contributor. The district has consistently generated over Rs 1,000 crore annually since 2022-23. Collections stood at Rs 1,004 crore in 2022-23 and rose to Rs 1,260 crore in 2023-24. In the current fiscal, revenue from the district had already surpassed Rs 1,200 crore by Feb.
Realtor Manjunath T highlighted the increasing demand for agricultural land in Bengaluru Rural. “After the govt amended the Land Reforms Act in 2020, allowing non-agriculturists to buy agricultural land, demand has surged. With the district’s proximity to Bengaluru and the international airport, investors are driving property prices up,” he said. However, whether last-minute registrations will help bridge the shortfall remains to be seen.
