Nagpur property boom shifts to rural areas

* However, in Nagpur Division, stamp duty collection registers a dip on account of high prices resulting in realty market slump, increased target to department
* Nagpur Rural and Gadchiroli exceed the given targets at the end of October itself
By Kartik Lokhande 
After exceeding target for two consecutive years, stamp duty collection in Nagpur Division has dipped at the end of October this financial year. According to officials, the collection is almost 10 per cent lesser than expected. The official data makes an interesting revelation that due to high property prices in Nagpur city, the demand for property is more in Nagpur Rural resulting in the latter area exceeding the target at the end of October itself.
Senior officers in the Department of Registration and Stamp Duty told ‘The Hitavada’ that the dip in collection could be attributed to a variety of reasons. However, they said, the main reason was slump in realty market. “High prices of properties has resulted in lesser number of documents getting registered,” said an officer. Further, he said, the increase in stamp duty collection targets has affected the recovery percentage.
As per the official figures, the stamp duty collection target was Rs 687 crore in 2013-14 for six districts of Nagpur Division. Later, with good recovery, the target was revised to Rs 920 crore. Against this, the actual recovery was Rs 929.43 crore. For the current year 2014-15, the department has given target of Rs 1,095 crore. Against this, the department has been able to collect stamp duty of Rs 498.06 crore. “Compared to the previous year, the collection this time also is good. However, the collection is 45.48 per cent of increased target. Despite increased target, the collection should have been at least 55 per cent of the target,” said an officer.
As far as district-wise figures are concerned, the highest target of Rs 839 crore is given to Nagpur city, where the collection till October is Rs 323.63 crore. This is 38.57 per cent of the target, lower than the Division average. Quite interestingly, the target of Rs 75 crore has been exceeded in Nagpur Rural at the end of October only. The collection of stamp duty is Rs 75.62 crore in Nagpur Rural. This also shows that the demand for property is shifting towards rural areas, with the prices sky-rocketing in Nagpur city. The scene is likely to turn better for property in rural parts of Nagpur, said the officer.
Among remaining four districts in Nagpur Division, stamp duty collection is better than the Division average. Gadchiroli district, which had the lowest target of Rs 8 crore only, has already crossed the target. The stamp duty collection in Gadchiroli district, at the end of October, is Rs 8.55 crore. Sources said that this is on account of a single land deal in Chamorshi tehsil yielding stamp duty of over Rs 4.50 crore.

Stamp duty collection in Nagpur Division

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District/Office          Target           Collection          Percentage

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Nagpur city               Rs 839 cr       Rs 323.63 cr          38.57

Nagpur Rural            Rs 75 cr         Rs 75.62 cr           100.82

Bhandara                   Rs 56 cr         Rs 29.14 cr             52.03

Chandrapur                Rs 64 cr         Rs 32.33 cr             50.51

Wardha                       Rs 53 cr         Rs 28.79 cr             54.32

Gadchiroli                   Rs 8 cr           Rs 8.55 cr              106.87

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Total                           Rs 1,095 cr     Rs 498.06 cr           45.48

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(Stamp duty collection figures at the end of October 2014)

Stamp duty collection in past few years

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Year            Target           Collection           Percentage

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2010-11       Rs 442 cr      Rs 449.76 cr          107.09

2011-12       Rs 525 cr      Rs 329.14 cr            62.69

2012-13       Rs 625 cr      Rs 782.70 cr           125.00

2013-14       Rs 920 cr      Rs 929.43 cr           101.00

2014-15       Rs 1,095 cr   Rs 498.06 cr            45.48

(Till Oct)

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Maximum stamp duty payment through GRAS

Government Receipt Accounting System (GRAS), an e-payment system, has worked wonders for the State Government as far as payment of stamp duty is concerned.

According to officials, the collection of stamp duty through GRAS has increased tremendously. In fact, maximum of the collection is through GRAS. As far as the current financial year is concerned, of a total Rs 498.06 crore stamp duty collected till October-end, a whopping Rs 441.66 crore has been collected through GRAS. Only Rs 56.40 crore has been collected through Department of Treasury.

Finance Department, Government of Maharashtra, has decided to receive payments electronically. GRAS is e-payment mode in addition to the conventional methods of payment offered by the Government. The system of accepting on-line payment of Maharashtra State’s Taxes through internet portals of various banks has been developed, without having any implication on the existing procedure of the executive and accounting agencies of the department. GRAS is a 24x7 facility and citizen can make payment any time of the day. On-line filling of single challan form facilitates minimum fields of the challan to be filled. Instant on-line receipts for payment made and instant on-line bank transaction number become available under the system. Further, one can pay personal taxes as well as on behalf of a firm, company, and others.

(23-11-14)