Karnataka Raises Property Registration Fees, Citizens Demand Rollback
The state government's decision to increase property registration fees by 2% has sparked strong opposition from the public and opposition parties, who are now demanding an immediate rollback.
Property RegistrationReal EstateFee HikeKarnatakaOppositionReal EstateAug 31, 2025
Deputy leader of opposition in the assembly, Arvind Bellad, criticised the Congress government for its 'anti-people policies' that are burdening the public already struggling with rising prices. 'The government has suddenly doubled the property registration fee. For poor and middle-class families, this increase—raising stamp duty and registration charges to 7.6%—is a significant burden,' he said, urging the government to revert to the earlier rates.
Citizens argue that under the pretext of providing 'better and effective service', the state government has increased registration charges on real estate documents. What is more regrettable is that even those documents registered days earlier are also being charged at the new rate. Buyers of land, farms, and houses, as well as builders, have been left frustrated. Due to the fee hike, transactions have stalled in recent days, according to deed writers in Dharwad.
Despite the backlash, the commissioner of registration and stamp duty, Mullai Muhilan, defended the fee hike, stating that Karnataka's fees remain lower than in many other states. He clarified that all pending or recently submitted documents will be recalculated under the new rate, and payment of the revised fees is mandatory.
The increase in fees has particularly affected first-time homebuyers and small-scale builders, who are already facing financial challenges due to the economic downturn. Many have expressed their dissatisfaction on social media, calling for a protest against the new rates. Local real estate agents and property dealers have also joined the chorus, stating that the fee hike could further dampen the already sluggish real estate market.
The state government has defended its decision, arguing that the additional revenue generated will be used to improve the infrastructure and services related to property registration. However, this explanation has not been well-received by the public, who feel that the increase is unjustified and will only add to their financial burden.
In response to the public outcry, several opposition parties have called for a state-wide protest and are planning to file a petition in the High Court to challenge the fee hike. They argue that the government should focus on reducing the cost of living and providing relief to the public rather than imposing new taxes and fees.
The situation remains tense, and the government has yet to provide a clear timeline for reviewing the fee increase. As the debate continues, many citizens are left with no choice but to bear the additional cost or delay their property transactions until a resolution is reached.
Frequently Asked Questions
What is the new property registration fee in Karnataka?
The new property registration fee in Karnataka has been increased by 2%, raising the total stamp duty and registration charges to 7.6%.
Who is opposing the fee hike?
The fee hike is being opposed by the public, opposition parties, and real estate agents, who argue that it places an unfair burden on middle-class and poor families.
What is the government's stance on the fee hike?
The government defends the fee hike, stating that Karnataka's fees remain lower than in many other states and that the additional revenue will be used to improve property registration services.
How has the fee hike affected the real estate market?
The fee hike has stalled property transactions, particularly affecting first-time homebuyers and small-scale builders who are already facing financial challenges.
What actions are being taken to challenge the fee hike?
Opposition parties are calling for a state-wide protest and planning to file a petition in the High Court to challenge the fee hike, demanding a rollback of the new rates.
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