The Registration Department, in all likelihood, will fall short of its target in revenue collections this year.
Against the projected figure of about Rs. 10,470 crore for fiscal 2014-2015, the department, as of now, has netted Rs. 7,276 crore. There is still a gap of around Rs. 3,000 crore. In other words, the department has to net the amount in a month.
An official in the Registration Department says that in recent times, the maximum amount collected during March was around Rs. 750 crore.
If the department does not realise the targetted amount this year, this would be the third year in succession it will be failing in its target.
In 2012-13, against the estimated revenue of about Rs.8,517 crore, the department earned Rs. 7,645 crore. During 2013-14, the revenue was around Rs. 8,056 crore against the projected Rs. 9,222 crore.
The main reason cited by the government is the general economic slowdown.
Ajit Kumar Chordia, president, Chennai chapter of the Confederation of Real Estate Developers Association of India (CREDAI), however, says that it is not just the slowdown. “The steep increase in the guideline values, effective since April 2012, is the key factor for the current situation,” he says.
“The revised guideline values are much higher than the perceived market rates. This is why the growth rate in the registration of documents has been negative and it will continue to remain so,” he adds.
Mr. Chordia says that not many deals in the real estate sector are happening because prospective buyers are postponing their decision, anticipating that the guideline values would be reduced.
In the event of registration of properties below the guideline values, the parties concerned would have to face action from the Income Tax department.
For 2014-15, so far it has netted Rs. 7,276 crore against the projected figure of
Rs. 10,470 crore
