After the Demonetization, the recently unearthed multi-crore land scam in Hyderabad seems to have hit realty business hard, all because of the failure of the Telangana government in curbing illegal registrations. The realty trade which had been on a recovery path after demonetization in the last three months, had to borne the brunt again with the land scam.
Land and property registrations have gone down for the last two weeks and incurred substantial revenue loss to the state exchequer. Only Rs 106 crore revenue has been generated through land registration and stamp duty in the month of June so far, as against Rs 110 crore earned in the same period last year.
The number of land registrations came down in Hyderabad and Ranga Reddy district particularly where the reality sector revived after the demonetization affect. Many prospective buyers and sellers withdrew applications filed for property registrations.
The applications filed for registration through anywhere registrations were cancelled after the government scrapped the system with immediate effect. Another major reason for slowdown in the realty business was the reshuffling of the entire Registration department by transferring almost all Sub-Registrars and withdrawing the discretionary powers given to the officials in the registration process.