Demonetisation effect: Fewer property registrations in Maharashtra | mumbai news | Hindustan Times
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Demonetisation effect: Fewer property registrations in Maharashtra

According to the department figures, the number of documents for registration has dropped to 4,000 a day from the previous 7,300, while the daily collection amount has dropped to Rs42 crore from the earlier Rs64 crore.

mumbai Updated: Nov 19, 2016 01:06 IST
Naresh Kamath
The stamp duty and registration department had set a target of Rs23,548 crore for this financial year, of which they have recovered 52% so far. In the last financial year, it managed to meet its target of Rs21,767 crore.
The stamp duty and registration department had set a target of Rs23,548 crore for this financial year, of which they have recovered 52% so far. In the last financial year, it managed to meet its target of Rs21,767 crore.(Hindustan Times)

Demonetisation has led to a drop in the number of registrations in the stamp duty and registration department of the state government.

According to the department figures, the number of documents for registration has dropped to 4,000 a day from the previous 7,300, while the daily collection amount has dropped to Rs42 crore from the earlier Rs64 crore.

N Ramaswamy, inspector general of registration and controller of stamps, said, “We are seeing a decline in revenue as well as registration of documents.”

“People have put all home purchases and leases on the backburner,” said Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association (MSWA), an association of cooperative housing societies.

Although 90 % of the payment is done online and does not deal with cash, the department still had to bear the brunt of the move. There is one fee called document handling fee -- Rs20 for a page – which used to be paid in cash. The officials are now asking buyers to get a demand draft for the fee.

The stamp duty and registration department had set a target of Rs23,548 crore for this financial year, of which they have recovered 52% so far. In the last financial year, it managed to meet its target of Rs21,767 crore.

THE EFFECT

•Real estate sales expected to drop as customers wait and watch. Some brokers say business down up to 25%.

•In the premium, luxury segment, particularly in resale, where cash component was high, enquiries have come down sharply.

•Residential real estate prices expected to drop 10-15% in the wake of the sluggish demand.

•Land transactions to also fall in the short-term as cash component was high in such deals.

•Retail sales have declined around 15%, say some retailers.

•Footfalls, sales at shopping malls have declined 20-25% over the last week