HYDERABAD: The ban on notes of higher denomination has directly impacted property registrations in the city. Though the situation has improved, normalcy is far from achieved.
The number of sale deeds issued since demonetisation had dropped to 40 per cent from. Three months later, the property registrations have improved by 70 per cent, say revenue officials.
“We used to get `16 crore a day before notes were banned and this dropped to `8 crore. Now, we are able to earn `12 crore. It is not normal for revenue to be down to such levels,” said Vemula Srinivas, deputy inspector general of Registration and Stamps Department, Hyderabad. Sale of documents such as stamp papers too have come down, he added.
Post demonetisation, sub registrar offices witnessed a fall in sales of sale deed documents. Most citizens visited offices for registration of rental agreements, mortgages, will deeds. However, there is an increase in number of gift deeds, said officials.
The real estate sector, on the other hand, is moving towards normalcy, though cash transactions have currently been put on hold.
“Sale and processing of open lands and high end villas is not moving at a high pace now. It has, in fact, reduced drastically, as at least 30 per cent of the transaction is made in cash. Soon, it will start moving,” said Gummi Ram Reddy, president, Confederation of Real Estate Developers’ Association of India, Telangana.
On the issue of property registrations dropping post demonetisation, Reddy said the area where registrations have dropped have to be kept in mind. In certain areas, like Charminar for instance, most of the property registrations were done using black money but in prime areas of the city it was done in white. There definitely is a drop in property registrations but this is subjective to the property area and the payment practices, he added.
P Dasharath Reddy, President, Telangana Real Estate Developers’ Association, also agreeing with Ram Reddy, said that enquiries regarding villas and plots have come down.