BENGALURU: The implementation of e-khata system to prevent fraudulent property transactions and mid-December transfer of sub-registrars have resulted in a sharp decline in property registrations in Karnataka, with only 1.5 lakh documents being registered in Dec 2024, the lowest monthly tally in the ongoing financial year. This year, the May-September period saw monthly registrations of 2 lakh and above.
According to the stamps and registration department, the slowdown in registrations has caused a shortfall of Rs 1,971 crore in revenue from stamp duty and registration fees, compared to the target of Rs 18,388 crore for Dec 2024. The department managed to collect Rs 16,416 crore by the end of the month.
Over the first nine months of this financial year, more than 17 lakh property documents were registered in the state. However, in October, registrations began to decline, with 1.7 lakh documents registered in the month. November saw 1.6 lakh documents, and December further declined to just 1.5 lakh registrations.
To address the shortfall, the govt is actively considering a second hike in the guidance value of properties this year; the previous increase of 15-30% was implemented in October. This was discussed at the meeting chaired by revenue minister Krishna Byre Gowda on Tuesday.
Senior department officials are optimistic about the long-term benefits of the new system. “The booming real estate market, especially in Bengaluru, has faced setbacks due to fraud. Many people are still wary of purchasing properties due to fears of fraudulent documents. If we make the system transparent, it will fuel growth in the coming years,” said several real estate consultants, who welcomed the govt’s move.
The officials emphasised that despite the reduced registration numbers, there was a 17% increase in revenue compared to the same period in 2023. In December 2023, the department had set a target of Rs 14,009 crore and had collected Rs 14,348 crore. The current year’s collections mark a huge improvement. Officials expressed confidence that the state would meet its annual revenue target of Rs 26,000 crore by March.
“We collected Rs 13,348 crore through the registration of property documents in 2023 until the end of December. In 2024, we collected Rs 16,416 crore, showing a 17% increase compared to the same period in 2023,” said an officer from the department.
In addition to the e-khata system, officials claim that transfer of 90 senior sub-registrars also contributed to the slowdown in registrations. On Dec 10, the state govt transferred officials to various locations, causing disruption in daily operations. Several sub-registrars contested the transfers, claiming they were untimely, and some returned to their original posts following an interim order from the high court.
At a recent review meeting, CM Siddaramaiah hailed to the move to check frauds in registrations and directed officials to conduct an intensive campaign to expedite the issuance of e-khatas within BBMP limits, urban local bodies and gram panchayats. The goal is to complete the e-khata issuance by February 10. While this initiative is expected to temporarily lower revenue from stamp duties and registration fees, it is anticipated to reduce property fraud and discourage undervaluing of properties to evade taxes.
