The registration of properties in the twin cities of Noida and Greater Noida has been badly hit by the demonetisation of high value notes. This has resulted in a sharp fall in the revenue of state government as the registration of properties, especially flats, has fallen to almost half compared to previous two months.
The figures of past three months of revenue and registration department show a major fall in registration and revenue. Keshav Kumar, additional district magistrate (finance), Gautam Budh Nagar, said the district’s registration department has had an annual target of Rs 2223.60 cr revenue collection from the registration of properties in the form of stamp duties and registration fee. “We usually collect Rs 110-150 cr in one month. In September and October, we collected Rs 114.32 cr and Rs 120.04 cr respectively. The revenue, however, has fallen to Rs 79.11 cr in November,” he said.
Officials feel that the drastic change is due to the demonetisation introduced on November 8. To control the revenue loss, the government had allowed the department to collect a property registration fee upto Rs 20,000 in old currency notes till December 15. However, for stamp duty, old currency notes were not accepted.
The officials of district administration and revenue department also conducted inspection drives at newly developed housing societies to ensure that people do not shift to houses before registration. However, this has not yielded any result as many people have no cash in hand.
Chandra Shekhar, an advocate who deals in registration of properties, said that at present only those who have already bought their houses before November 8 visit the registry department. “The process for resale of properties is badly hit. The future of real estate market depends on the government policies after December 31,” he said.
These days, people give priority to meeting their daily needs and buying a property comes second, he said. The revenue department has so far collected Rs 1,286.20 cr revenue against its annual target of Rs 2223.60 cr. Officials are quite apprehensive about meeting their target this financial year because the property market is badly affected by the cash crunch.