Low-value transactions hit revenue from registration

People waiting at the sub-registrar office in Srirangam, Tiruchi, on Tuesday.

People waiting at the sub-registrar office in Srirangam, Tiruchi, on Tuesday.  

Increase in mortgage of property due to severe cash crunch

Economic recession and the raging pandemic have cast a long shadow on the registration process in Tiruchi.

Tiruchi zone comprising Tiruchi, Karur, Perambalur, Ariyalur and Pudukottai districts accounts for 10% to 15 % of the total revenue derived through registration fee and stamp collection in the State.

The first three months of 2020 saw the percentage of registration moving towards the target fixed by the Department of Registration. Post-lockdown, however, registration of lands, plots and other properties are seeing a huge decline, sources say.

After relaxation of lockdown norms, registration of properties have resumed. And people who want to register documents have been given special permission to travel. This has led to gradual increase in number of registrations from June 1. People are flocking to the 12 sub-registrar offices in Tiruchi district. The same trend can also be seen in sub-registrar offices in Karur, Perambalur, Ariyalur and Pudukottai districts.

The number of documents registered in the zone has almost reached the pre-pandemic figure. However, the value of properties is just about 70% now.

According to sources, the zone receives almost 1,000 documents on weekdays. About 500 are registered on Saturdays. But most of the transactions appear to involve sale of small properties.

In a sign of the times, there are more registrations on mortgage of properties. There have been hardly any high-value transactions during the last month, the sources say.

“We do not come across high-value transactions beyond ₹1 crore these days. There have been more low-value transactions for the past few weeks,” said a senior official of the Department of Registration in Tiruchi.

Going by the pattern of transactions, people facing severe cash crunch are disposing of their low-value property. The trend is likely to continue for a few more months, another official said.

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Printable version | Jul 7, 2020 12:17:42 PM | https://www.thehindu.com/news/cities/Tiruchirapalli/low-value-transactions-hit-revenue-from-registration/article31957611.ece

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