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Karnataka witnessed a significant decline in property registrations in late 2024, attributed to the implementation of the e-khata system and a mid-December transfer of sub-registrars. In December 2024, only 1.5 lakh documents were registered-the lowest monthly tally of the financial year-causing a revenue shortfall of INR 1,971 crore against a target of INR 18,388 crore. Despite the slowdown, there was a 17% increase in revenue compared to 2023. Officials are optimistic that transparency measures and a potential second hike in property guidance values will fuel long-term growth and help meet the state's annual revenue target.
The implementation of the e-khata system to enhance transparency and prevent fraudulent property transactions, coupled with the mid-December transfer of sub-registrars, has led to a steep drop in property registrations in Karnataka. December 2024 recorded only 1.5 lakh registered documents-the lowest in the current financial year-compared to over 2 lakh monthly registrations between May and September. Advertisement
According to the stamps and registration department, the decline in registrations resulted in a revenue shortfall of INR 1,971 crore, with only INR 16,416 crore collected by the end of December against the target of INR 18,388 crore. Over the first nine months of the financial year, more than 17 lakh property documents were registered, but registrations began falling in October, with 1.7 lakh documents registered that month, followed by 1.6 lakh in November, and further declined in December.
To address the shortfall, the government is considering a second hike in property guidance values this financial year, following an earlier 15-30% increase in October. Senior officials believe the e-khata system and related measures will benefit the real estate market in the long run by reducing fraud and encouraging property transactions.
Officials also highlighted a 17% revenue increase compared to the same period in 2023. By December 2023, the department had collected INR 14,348 crore, whereas this year, the collections rose to INR 16,416 crore. They expressed confidence in meeting the annual revenue target of INR 26,000 crore by March.
The transfer of 90 senior sub-registrars in mid-December also contributed to the slowdown in registrations. These transfers disrupted daily operations, with some officials contesting their relocation and a few returning to their original postings after interim court orders.
At a recent review meeting, Chief Minister Siddaramaiah praised the efforts to curb fraudulent registrations and directed officials to expedite the issuance of e-khatas within urban local bodies and gram panchayats, aiming for completion by mid-February. While this initiative is expected to temporarily lower revenues, it is anticipated to discourage property undervaluation and significantly curb fraud.
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