Bangalore: The State Government is likely to net Rs. 3,000 crore from stamps and registrations this year, and this is regarded as a reflection of the buoyancy in the real estate market.

Sources told The Hindu here on Friday that the revenue from stamps and registrations has surpassed the estimates of the Government. Compared with a net revenue realisation of about Rs. 1,900 crore in the last financial year, the Finance Ministry had set a target of Rs. 2,100 crore for the current year.

Target

This target was surpassed within the first half of the financial year, and on December 31 last, the Government had netted Rs. 2,500 crore.

The Ministry has now revised the target to Rs. 3,200 crore.

Revenue Minister Jagadish Shettar, who has brought in several changes in the Revenue Department with particular reference to registration of property to ensure a higher degree of transparency, told The Hindu that the Department of Stamps and Registrations would achieve even the fresh target set.

Real estate market

"The Government is effortlessly netting a high revenue, thanks to the buoyancy in the real estate market and the honesty among private companies, particularly the information technology companies in registering their property for the amount they had paid to the sellers. This, indeed, is a refreshing trend and deserves to be complimented," Mr. Shettar said.

Revenue

A large part of the revenue was from Bangalore and its adjoining areas compared with the rest of the State as the buoyancy in the real estate market is being largely witnessed here.

It had a direct bearing on the information technology sector. Most of the registrations were above the guidance value rates prescribed by the Inspector-General of Stamps and Registrations.

Guidance value

In the past, most buyers had not even cared to adhere to the guidance value resulting in the Government establishing a separate wing to check the undervaluation of stamps.

Revenue stamps

Mr. Shettar said the State Cabinet endorsement to the reorganisation in the sale of the Re 1 revenue stamp would net a higher revenue to the Government. It was to prevent the alleged blackmarketing in revenue stamps, which was quite rampant in the State.

Scam

Following the stamp paper scam reported in the State in 2002-03, the Government had stopped purchasing revenue stamps from the Indian Security Press, Nasik.

This had resulted in the private vendors obtaining the same from the neighbouring States and trading in revenue stamps.

Thus, the Re 1 revenue stamps were sold in the State at rates varying between Rs. 10 and Rs. 50 by private vendors.

Notification

Thanks to the interest exhibited by the Department of Posts and, in particular, the Karnataka Postal Circle, the State Cabinet at its meeting on Thursday approved the sale of the revenue stamps through post offices and treasury offices.

The Government will shortly issue a notification in this connection.

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