Hyderabad: With the Telangana factor lurking around in the background, though it was not one of the main issues in the elections, land transactions came down drastically in Ranga Reddy and Hyderabad districts. This is now beginning to reflect in the land registration revenue figures in the last two months.
As a good example, from the Qutubullapur sub registrar’s office in Ranga Reddy district, the revenue from land registration in March was only Rs 3.95 crore as against its monthly target of Rs 25.04 crore. Even in February, the revenue was only Rs 4.93 crore as against the same monthly target.
In fact, none of the sub-registrar offices in Ranga Reddy and Hyderabad districts could achieve more than 60 per cent of their targets in the 2008-09 financial year, which ended last month. With the slowdown setting in real estate boom, the registration and stamps department have even reduced its target for this year, which is just 25 per cent over the previous year’s revenues.
“Land transactions have come down in the last one year and the trend has shown further decline in the last two months due to the elections in particular and recession in general,” N Saidi Reddy, sub-registrar of Qutubullapur told TOI.
Ranga Reddy west division, which covers most potential areas like Qutubullapur, Shamshabad and Medchal could only manage a revenue of Rs 614 crore against its yearly target of Rs 967 crore for the year 2008-09. Ranga Reddy east division could manage Rs 353 crore towards registration charges against its target of Rs 555 crore.
Considering the general recessionary trends, the registrations and stamps department did not revise registration fee in February 2009. The department has been revising the rates every six months for the last two years. Rates were last revised in August 2008.
“Many software employees had bought land in Ranga Reddy district west division areas like Maheshw a r a m , S h a m s h ab a d , Q u t u bu l l ap u r, Jeedimetla, Nizampet and other areas earlier but there has been a slowdown on new land transactions,” another subregistrar said.
The dwindling revenue has hit Hyderabad district too. While Hyderabad north fetched about Rs 126 crore of its target of Rs 194 crore, Hyderabad south got Rs 254 crore against its target of Rs 372 crore for the year 2008-09.
To give an impetus to land transactions and improve revenues, the department has slashed the tax by one per cent for women and from seven percent to two percent in case of flats admeasuring less than 1200 sft.
Officials said the fall in land transactions was intricately linked to the separate Telangana statehood issue, as well. “Many people are waiting for the outcome of the elections and especially how the Telangana Rashtra Samithi (TRS) fares. We are expecting there will be improvement in the land transactions after June,” a district registrar said.
Both Ranga Reddy and Hyderabad districts got good revenues during the 2007-08 financial year. While Ranga Reddy west earned Rs 711 crore in the year, east division earned Rs 411 crore. Hyderabad district got 426 crore in the 2007-08 year.
As there were more transactions in Hyderabad and Ranga Reddy, the registration and stamps department had bifurcated the districts into two divisions and created nearly ten more new sub-registrar offices in August and October, 2007.