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The stamps and registration department of Karnataka faces a major challenge in meeting its INR 26,000 crore revenue target for 2024-25. So far, it has collected INR 20,186 crore, leaving a shortfall of INR 5,800 crore with only weeks remaining. Slow real estate activity, technical issues affecting encumbrance certificate (EC) generation, and the new mandatory e-khata rule have caused delays, especially in Bengaluru. While Bengaluru Urban leads collections with over INR 13,000 crore, and Bengaluru Rural remains a steady contributor, the slowdown post-October is evident. The department is making urgent efforts to boost collections before the fiscal year ends.
The stamps and registration department is currently confronted with a significant challenge in achieving its ambitious revenue target of INR 26,000 crore for the financial year 2024-25. As of the past week, collections had amounted to INR 20,186 crore, leaving a daunting shortfall of INR 5,800 crore to be secured within the final weeks of the fiscal year. Advertisement
Department officials have explained that sluggish real estate transactions have played a role in this shortfall. However, they noted that the larger impact stemmed from technical issues that disrupted the generation of encumbrance certificates (ECs), along with the recent mandate requiring e-khata for registrations. Both factors have contributed to a notable slowdown in transactions.
Bengaluru Urban has led the collections, generating over INR 13,000 crore, followed by Bengaluru Rural with over INR 1,200 crore. The other 29 districts combined have contributed over INR 5,000 crore. With the fiscal year drawing to a close, authorities are making urgent efforts to enhance revenue inflow in a bid to meet the year-end target.
The mandatory e-khata regulation, which was enforced in October last year to prevent illegal registrations, has had a particular impact on Bengaluru. Revenue minister Krishna Byre Gowda stated that revenue from illegal registrations had decreased but insisted that there had been no loss of income to the government from legitimate property registrations.
Despite the minister's clarification, data from the revenue department indicates a clear shift in collections. In the first six months of the fiscal year, from March to September 2024-when the e-khata was not compulsory-the department collected INR 13,811 crore in stamp duty and registration fees. However, collections fell to INR 6,375 crore between October 2024 and February 2025, suggesting a slowdown following the enforcement of the new regulation.
Despite these challenges, Bengaluru Rural continues to serve as a crucial contributor to revenue generation. The district has consistently garnered over INR 1,000 crore annually since 2022-23. Collections stood at INR 1,004 crore in 2022-23 and rose to INR 1,260 crore in 2023-24. In the current fiscal year, revenue from the district had already exceeded INR 1,200 crore by the end of February.
The stamps and registration department is making concerted efforts to close the gap in its revenue target for the financial year 2024-25. Although collections have surpassed figures from the previous year so far, doubts linger regarding the ability to reach the ambitious INR 26,000 crore goal within the remaining weeks of the fiscal year. The coming days will be crucial in determining whether the department can overcome these hurdles and meet its target.
Source: TNN
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