The cash restrictions imposed by the Model Code of Conduct (MCC), limiting transactions above Rs 50,000, are significantly impacting Mancherial's real estate sector. Many customers are postponing the registration of their assets as a result.
Despite facing setbacks such as demonetization in 2016, the implementation of Goods and Service Tax (GST), and the disruptions caused by Covid-19, the real estate industry has been gradually recovering since 2020. It has overcome these challenges, witnessing the emergence of new projects and a surge in house site and flat sales within the district.
However, the sector is now confronted with a new challenge in the form of restrictions imposed under the Model Code of Conduct (MCC). To uphold the integrity of elections and enhance transparency during the polling process, political parties are encouraged to avoid cash transactions. They advise their officials and agents not to carry large sums of money, as stipulated by the MCC. The police have intensified vehicle checks to enforce this code.
Customers are hesitating to pay for their properties due to the implementation of the MCC. They choose to delay property registrations until December. Promoters are compelled to bear the financial burdens resulting from the code, including interest payments on loans obtained from both banks and private lenders. As a result, numerous real estate companies have opted to halt their operations for a duration of two months.
Meanwhile, the police have received criticism for their watchfulness at the sub-registrar's office, where patrol vehicles are stationed. Police officials scrutinize customers and agents visiting the Mancherial SRO office to determine if they are carrying cash. This heightened police presence at the sub-registrar's office has triggered anxiety among customers and agents, marking the first time such measures have been employed.
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