Circle RateMohandas Pai, former Chief Financial Officer (CFO) of Infosys, is unhappy with the Karnataka government’s decision to increase the circuit rates. He has appealed that the government should think again about its plan to increase the circuit rate in an attempt to overcome the shortfall in revenue. He said, “This is like putting unnecessary burden on the common man, which is very wrong.”
Why has there been a decline in property registration in Karnataka?
Mohandas Pai said, “Government mismanagement cannot become a means of harassing the citizens. We are already troubled by high taxes, corruption and reduction in quality of life.” According to the Times of India report, the e-khata system was implemented in Karnataka to prevent fraudulent property transactions and in December. There has been a decline in property registration across the state due to the order of transfer of sub-registrars.
Registration has started decreasing since October
The situation is that in December last year, only 1.5 lakh property documents were registered across the state. This is the lowest figure for any month in the current financial year. Whereas in the first nine months of the financial year 2024-25, more than 17 lakh properties were registered. This number started declining from October, when only 1.7 lakh property documents were submitted for registration this month. After this, this figure fell to 1.6 lakh in November and reached the lowest level i.e. 1.5 lakh in December.
Karnataka government suffered a big loss
Now it is obvious that if there is a decrease in property registration, then the income from it will definitely decrease, hence the government suffered a loss of Rs 1971 crore. The Revenue Department had set a target of earning Rs 18,388 crore from property registration by December 2024, whereas the earning was only Rs 16,416 crore. Now the government is thinking of increasing the property circle rate to compensate for this loss in revenue. Whereas before this, 15-30 percent increase in circle rate had already been implemented.
What is circle rate?
Circle rate is the government rate at which land is bought and sold. It depends on the location of the property like if the property or land is in a good location, the circle rate will be higher and if it is in a village or backward area, the circle rate will be lower. Stamp duty and registration fees are decided on the basis of this circle rate.
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