Model Code of Conduct affects real estate sector in Mancherial

Restrictions on carrying cash above Rs 50,000 as part of the Model Code of Conduct is affecting the real estate sector in Mancherial, with several customers postponing registration of assets

Mancherial: Restrictions on carrying cash above Rs 50,000 as part of the Model Code of Conduct (MCC) is affecting the real estate sector in the district, with several customers postponing registration of assets.

The real estate sector, which received jolts in the form of demonetisation in 2016, Goods and Service Tax (GST) and Covid-19, has been recuperating since 2020. The firms were able to come out of the slump caused by the three challenges, with new ventures coming up and the district registering encouraging sales of house sites and flats.

However, the sector is now facing another challenge in the form of the restrictions and the police checking as part of the MCC. In order to maintain purity of elections and bring transparency in the process of polls, political parties are advised to avoid transactions in cash and to instruct their office bearers, officials and agents not to carry huge amounts of cash, as per the MCC. The police while enforcing the code have intensified vehicle checks.

“The customers are not coming forward to pay the cost of the assets with the MCC coming into force. They are postponing the registration of the property to December. The promoters are forced to bear the financial burden caused by the code. They are paying interests to the loans availed from banks and private lenders,” an owner of a major real estate firm said, adding that many firms have decided to stop their operations for two months.

Meanwhile, police are drawing flak for keeping a watch on the office of the sub-registrar by posting patrol vehicles there. Police officials are checking customers and agents visiting the office of Mancherial SRO if they carried cash. “Police were deployed at the office of the sub-registrar for the first time triggering anxiety among customers and agents,” a senior document writer said.

Rs 85 lakh seized in Mancherial

Deputy Commissioner of Police Sudhir Kekan said unaccounted cash of Rs.85 lakh was seized at inter-district check posts and other places in the district in the last few days. The cash was handed over to flying squad teams for further action. He advised the public to carry receipts of the funds when travelling.

In the meantime, Kumram Bheem Asifabad police seized unaccounted cash of Rs 14.20 lakh and 182 mobile phones while checking vehicles. Superintendent of Police K Suresh Kumar told the people to show source of funds and gold to policemen at the check posts.