UP encounters boom in real estate, revenue collection surpasses excise dept’s

Lucknow: The real estate boom in Uttar Pradesh has significantly boosted the state’s revenue, with the stamp and registration department emerging as a leader in growth, surpassing both state tax and excise departments.

“The surge in land and property transactions has led to an increase in both the demand for real estate and land prices, pushing the stamp department to unprecedented levels of revenue generation,” a senior government official said.

According to the finance department’s latest report, the stamp department’s revenue saw a remarkable increase of approximately Rs 850 crore during this Diwali season compared to last year, while excise revenue grew by only Rs 400 crore in the same period. Additionally, state GST collections grew by Rs 413 crore year-over-year. The significant rise in real estate transactions is attributed to the growth in both residential and commercial property purchases, along with government schemes targeting the common public. Notably, schemes such as gift deed and blood relation registration for Rs 5,000 have been instrumental in driving revenue.

While the festive season typically brings an increase in liquor sales and GST collections, it was the stamp department that saw the largest growth. Historically, stamp and registration revenue has lagged behind excise and GST, but for the first time in October, it led in revenue growth. The department collected Rs 2,890 crore in October, compared to Rs 2,026 crore during the same month last year — an increase of Rs 864 crore.

The expansion of real estate is not limited to the National Capital Region (NCR) and major cities like Lucknow, Kanpur, Varanasi, Meerut, Prayagraj and Agra. Smaller districts are also seeing a rise in land prices and transactions, fuelled by industrial schemes and urbanisation.

This financial year, the stamp department has set a target of Rs 35,651 crore in revenue, and with Rs 17,723 crore already collected, it is on track.