Karnataka’s property registrations plunge amid E-Khata rollout, revenue shortfall looms

The implementation of the e-khata system to curb fraudulent property transactions, coupled with the mid-December transfer of sub-registrars, has caused a significant decline in property registrations in Karnataka. Reportedly, in December 2024, only 1.5 lakh property documents were registered—the lowest monthly figure in the ongoing financial year.

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The slowdown has led to a revenue shortfall of ₹1,971 crore, as the stamps and registration department collected ₹16,416 crore against a December target of ₹18,388 crore. Despite the decline, revenue from stamp duty and registration fees for 2024 has grown 17% compared to 2023, with collections rising from ₹14,348 crore to ₹16,416 crore by December-end.

Officials attribute the decline to reduced buyer confidence following fraud concerns and disruptions caused by the transfer of 90 senior sub-registrars. The transfers, some contested in court, impacted daily operations.

Chief Minister Siddaramaiah has directed an intensive campaign to expedite e-khata issuance across urban and rural areas, targeting completion by February 10. While the initiative is expected to lower revenue temporarily, officials anticipate long-term benefits, including reduced property fraud and a transparent system to spur real estate growth.

Real estate consultants and senior officials have welcomed the reforms, optimistic about meeting the state’s annual revenue target of ₹26,000 crore by March 2025.