Karnataka fears massive revenue loss after currency chaos

November 16, 2016

Bengaluru, Nov 16: The Centre's move to demonetize high value currency notes threatens to derail Karnataka's revenue collection this financial year. Officials fear that the state might miss its revenue target by at least Rs 5,000-Rs 15,000 crore for the current fiscal. The move has already affected liquor sales, property transactions, and sale of new and used vehicles.

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"We are still assessing the impact and will get a clear picture by the weekend. We are certainly expecting some impact,'' said ISN Prasad, additional chief secretary, state finance department. "The government's revenues have taken a severe beating following the demonetization move. Whatever taxes were supposed to come to the state, including commercial taxes, sales taxes and all the revenues have been hampered. It will certainly have a huge impact on this fiscal's tax collection," said another finance department official.

The government's excise department has been the worst hit. The sale of foreign liquor has come down drastically in the past few days. A senior excise department official said: "Most of the excise revenue come from the sale of Indian Manufactured Foreign Liquor. Officials at government outlets have claimed that the sale has gone down by at least 50%."

The government had fixed an ambitious revenue target of Rs 16,510 crore for the excise department this year following a 25% hike in taxes on liquor. The government has collected only about Rs 7,500 crore so far. "People have stopped buying liquor, especially the expensive ones, due to shortage of high-value currency," added the official.

The revenue target for the stamps and registration department had been fixed at a higher Rs 9,100 crore for the current fiscal. Most of this amount comes from revenue layouts through stamp duty and property registration, which has completely stopped since November 8. "Bengaluru is a big market for secondary real estate, which traditionally works on 60:40 white and black money ratio. Ban on transaction of black money has badly hit property registration," said a senior official of the stamps and registration department.

Comments

Althaf
 - 
Wednesday, 16 Nov 2016

Not only in karnataka All over india it will effect.

Skazi
 - 
Wednesday, 16 Nov 2016

let the Govt reduce the Value of lands for registration purposes... then the govt will get back the revenues.... as the buyers will come forward in the real estate business .....
The govt does not apply its mind while fixing the land values ... It goes by survey no.... whether the site has road connection or not,, the govt value is same for all sites ....

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News Network
December 31,2024

Mangaluru: In a heartwarming act of selflessness, the family of a 52-year-old auto-electrician from Mangaluru chose to donate his organs after he was declared brain dead in Abu Dhabi. This decision brought hope and new life to four people, turning a personal tragedy into a legacy of compassion.

Sudhakar, son of Chakku, hailed from Ekkur in Magaluru, and worked in Al Ain for nearly five years, continuing a 15-year career in the UAE. On December 14, while at work, Sudhakar experienced dizziness and was rushed to a clinic. His condition worsened as his blood pressure fluctuated. Due to insurance complications, he was referred to multiple hospitals before being diagnosed with a brain clot. A surgery was performed with his company’s consent, but during the procedure, Sudhakar suffered a cardiac arrest and was placed on a ventilator. Despite the family’s hopes for his recovery, he was declared brain dead on December 18.

Faced with an emotionally wrenching decision, the family chose to honor Sudhakar's memory by donating his organs. "The authorities contacted us for our consent, and the entire family, including his wife Seema and her father, participated in a conference call. Though it was a tough decision, we agreed to give life to others through him," shared Ganesh, Sudhakar's elder brother.

On December 23, at Cleveland Clinic in Abu Dhabi, Sudhakar’s lungs, liver, and kidneys were successfully retrieved for transplantation, giving four people a second chance at life. "We are proud that even in his passing, Sudhakar became a beacon of hope for others," said Ganesh.

The authorities extended immense support to Sudhakar’s family, ensuring the respectful transport of his mortal remains to Mangaluru. They also sponsored the travel of a family member to accompany the body, which arrived on December 27. Sudhakar's final rites were conducted the same day.

Sudhakar leaves behind his wife Seema, a homemaker, and two children, Sakshi, 20, and Sakshath, 11. While the family takes solace in his final act of generosity, they hope for support in securing the children's education and future.

Sudhakar’s story serves as a poignant reminder of how even in loss, one can choose to give the ultimate gift of life to others.

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News Network
January 6,2025

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Karnataka’s first C Band Doppler Weather Radar (DWR) in Mangaluru, work for which was supposed to have been finished by January 15, will be postponed slightly due to some technical difficulties, said N Puviarasan, head of India Meteorological Department (IMD)’s Bengaluru centre.

“We are hoping to get it running by this month's end at least,” said Puviarasan on the sidelines of a stakeholders’ workshop organised by the IMD Bengaluru on January 4 to commemorate 150 years of IMD. The workshop was held at the premises of Karnataka State Natural Disaster Management Centre (KSNDMC) and had day-long sessions, including technical ones by Hindustan Aeronautics Ltd, Bengaluru and Department of Agro Meteorology, University of Agricultural Sciences, Bengaluru.

Puviarasan also said the IMD ran into obstacles in its bid to establish a S-band DWR in Bengaluru, due to problems in acquiring the land required. “We need 30X30 space to put up a tower and a small utility room,” said Puviarasan. According to him, IMD had originally planned to put up the radar in Nandi Hills. But, on Union Minister of State for Micro, Small and Medium Enterprises and Labour & Employment Shobha Karandlaje’s request, he said they started scouting for an appropriate place in Bengaluru. On July 23, 2024 Karandlaje had posted on X: “Following my request, the IMD has greenlit the installation of a Doppler radar in the city (Bengaluru), scheduled to be operational by year-end. This is a major step towards better weather forecasting & preparedness for natural disasters."

She had also posted a letter written to her by Union Minister of State (Independent Charge) Jitendra Singh, who said the radar will have an operational range of 250 km and will be installed in Bengaluru by 2024. He also mentioned that the site for the radar installation has already been identified and the Centre had informed the state government to acquire the site. “But the site suggested by the minister is not feasible because of the elevation issues,” said Puviarsan.

According to IMD scientists, there should not be buildings higher than the radar within its range, as readings will be affected. Puviarasan said they have now identified a place within a government school in Bengaluru and are awaiting permission to establish the radar. He said usually land acquisition is a huge problem. “This time, it’s a government school. Here, we don’t even need to raise a boundary wall, as it exists already. So, we’ll see,” said the director. If this is not working out, he said IMD will go back to its initial plan and will establish the radar in Nandi Hills. Mangaluru radar, being established near Kadri, is expected to cover 250-300 km radius, putting regions prone to heavy rains during monsoons in Karnataka, like Agumbe, Hulikal, Talakaveri, Kerekatte and Bhagamandala within its range, said a IMD scientist. Earlier, in his presentation, Puviarasan had also said apart from Bengaluru and Mangaluru, one X-band DWR is coming up at Dharwad. He also said proposals have been submitted for S-band radar at Honnavara and C-band at Ballari.

Without a DWR, Karnataka has been depending on the radars in Goa, Hyderabad and Chennai for more accuracy in forecasts for thunderstorms and rainfall so far, said IMD officials. In his presentation, Director of KSNDMC, Bhoyar Harshal Narayanrao, talked about why Karnataka is vulnerable to hydro-meteorological and geological disasters. He also said 80 per cent of Karnataka is prone to drought, and that in the last 23 years (between 2001 and 2024), 16 years are drought affected. He also said maximum number of landslides leaving widespread damage and casualties have occurred in Uttara Kannada, Shivamogga, Chikkamamgaluru, Udupi, Dakshina Kannada, Kodagu, Hassan, Chamrajanagara Mysuru and Chikkaballapura. The year 2018 saw the most landslides, at 462, between 2006 and 2024. Narayanrao also said Karnataka is the only state in the south with its own disaster monitoring centre and seeing its success other states are also thinking of establishing one on the lines of KSNDMC. He said KSNDMC is also being approached by a few startups to involve Artificial Intelligence in disaster management. “We are taking a cautious approach towards the idea. We are looking into what AI can offer and will decide accordingly,” said Narayanrao.

Other presentations included an overview of IMD services by S Balachandran, head of Regional Meteorological Centre, Chennai and possible integration of climate services in support of Karnataka State Action Plan on climate change by K J Ramesh, Former Director General, IMD. Sanjeev Verma, AGM, Air Traffic Management, Airports Authority of India, Kempegowda International Airport, Bengaluru also made a presentation of how weather forecasting is integral for air traffic management.

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News Network
January 1,2025

Udupi: In a shocking case of investment fraud, a 72-year-old man from Udupi, Karnataka, lost Rs 49 lakh after falling prey to a deceptive stock market scheme. The incident highlights the growing menace of online scams targeting unsuspecting individuals.

According to the complaint filed by Francis Castelino, an unknown individual added his son's mobile number to a WhatsApp group titled "Stock Market Navigation." The group shared stock market insights and promised lucrative returns, convincing Castelino’s son to invest. Trusting the information, the son persuaded his father to make substantial investments.

On December 30, 2024, Castelino transferred Rs 17,00,000, his wife contributed Rs 10,50,000, and their son invested Rs 21,50,000 to the bank account provided by the fraudsters. 

However, when Castelino attempted to withdraw the invested money, he and his family were pressured to reinvest further. Realizing that the promised profits and their principal amount were not forthcoming, the family approached the police for help.

A case has been registered at the Udupi CEN Police Station under Sections 66(C) and 66(D) of the IT Act and 318(4) BNS. Investigations are underway to track down the culprits and recover the lost funds.

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