Land registrations fall in Telangana

​Karimnagar: Demonetisation has taken a toll on land and property registrations in the district as realtors postponed land dealings till the new currency hits the market.

Real estate transactions worth crores of rupees have been stalled and did not progress beyond the stage of payment of advance.

The drop in registration affected the business and livelihood of photocopying centers, document writers and stamp vendors whose activity is linked to property registration in addition to the public exchequer.

The number of property registrations at the sub-registrar office here used to be 70 prior to carving of new districts. Subsequently, upon creation of new districts the number fell to 50.

After banning the high-value currency notes, even two or three registrations a day are not heard of. The registration offices wear a deserted look. The otherwise busy employees were seen relaxing in the office for want of work.

With formation of new districts out of Karimnagar district, several enthusiasts have paid advance amounts to real estate dealers to acquire lands near headquarters of the new districts.

Narendra Modi’s November 8 decision to ban the high-value currency notes served a shock to the real estate dealers forcing them to suspend their operations.

The real estate brokers are finding the current situation problematic because both the buyer and sellers have to account for the black money generated by transactions.

For a while, the new districts of Peddapalli, Jagtial and Sircilla experienced the realty boom. The demand for land in and around Peddapalli grew enormously during the past one month.

The land price multiplied from thousands to lakhs as several have decided to cash in the situation by selling their lands. They received advance amounts from the buyers.

As the deadline for registration is drawing near, both buyers and sellers are in the grip of tension. Drop in the number of registrations is perceptible.

The number of registrations was of the order of 50 or 60 a day prior to the demonetisation, but they dropped by more than 50 per cent subsequently.

The office staff at the sub-registrar’s office put the number of registrations carried out per day at 15 or 20. The scene in Jagtial district is no different. Here the number of registrations fell from 70 a day to mere 10.

That, too, the registrations carried out are not that of major deals. In Sircilla, the number dropped from at least 50 to less than 20. More or less, the same situation prevailed everywhere.

Here the problem is attributed to the discrepancy between the price of property mentioned in the sale deed and the sale price. In the changed scenario, both parties of the sale should have to account for the black money generated in the transaction.

The purchaser of property is not able to generate the new currency in lakhs of rupees in the prevailing situation. According to Karimnagar sub-registrar Madhukar, the number of registrations after the demonetisation dropped to less than 10.

He said that his office is not even receiving the online challans nowadays. Only one property registration was carried out today. The once busy staff members at the registrar’s office are now sitting idle.

According to a realtor at Sircilla, Sivanand, till a week ago the real estate activity in Peddapalli is very smooth. After the demonetisation, the registrar office is accepting only new currency notes.

Unable to do anything, all registrations were postponed. According to a stamp vendor at Karimnagar Surender, they get money only when the business of property registration was transacted.

For the past one week he hardly had a customer. There is complete lull in the business activity.