Nagpur Sub-Registrar Office Faces Probe for Skipping Rs 1,000 Crore in Property Transactions

Strategic Insights -

The sub-registrar office at Hingna in Nagpur has come under scrutiny for allegedly failing to report real estate transactions worth nearly Rs 1,000 crore in the statement of financial transactions (SFT). According to sources, the office did not use a new system implemented in 2024-25 to automatically collect data on property sales worth Rs 30 lakh and above. This led to a significant number of high-value transactions not being reported to the Income Tax (I-T) department. The probe is currently examining data from the last five years.

Key Takeaways:

  • The sub-registrar office at Hingna in Nagpur is under investigation for allegedly submitting incomplete information in the SFT, resulting in Rs 1,000 crore in property transactions being skipped by the I-T department.
  • The office did not utilize the new system introduced in 2024-25, which enables automatic data collection on property sales worth Rs 30 lakh and above.
  • A physical scrutiny of data revealed a gross mismatch, indicating that high-value transactions were not being reported.
  • The SROs across the country have to report details of properties worth Rs 30 lakh registered in their respective jurisdictions under the SFT.
  • The I-T department uses the SFT data to identify gains from high-value deals and include them in tax returns.
  • A random analysis of data showed that while property deeds registered volume increased, the monetary value nearly halved in a given year.
  • The probe is examining data from the last five years.

Statistics:

  • Rs 1,000 crore: The amount of property transactions allegedly skipped by the I-T department due to incomplete information in the SFT.
  • Rs 30 lakh: The minimum value of properties that SROs are required to report under the SFT.
  • 2024-25: The financial year in which a new system was introduced to facilitate automatic data collection on property sales worth Rs 30 lakh and above.
  • 5 years: The period being examined by the probe to gather data on the alleged discrepancies in property transactions reporting.

Sources:

  • Times of India (No date, no author) - "Probe into Rs 1,000 crore property deal: Nagpur's Hingna sub-registrar office in the dock for failing to report deals"