Bengaluru faces revenue shortfall from slowed property deals

Bengaluru's stamps and registration department is struggling to meet its revenue target of Rs 26,000 crore for 2024-25. As of February 28, collections reached Rs 20,186 crore, leaving Rs 5,800 crore to collect in March. Sluggish real estate transactions and technical issues with encumbrance certificates are slowing down property registrations. The new e-khata mandate, enforced in October 2024, has also contributed to the decline in collections, which dropped significantly after its implementation. Bengaluru Rural has been a strong revenue source, generating over Rs 1,200 crore by February. Demand for agricultural land in the area has increased since a 2020 law change. However, it remains uncertain if March registrations will close the revenue gap.