State governments across the country are already feeling the heat of demonetization as people have stopped all the purchases except for the essential commodities due to the acute cash crunch. The revenues of the state governments took a toll and making things extremely difficult. Telangana had already started thinking on the lines of cutting down the salary bills.
On the other side, the implications of this demonetization are going to be even pronouncing on the newest state of the country. The state government recently undertook districts reorganization and suddenly there is a Real Boom everywhere in Telangana but then all these have come to a grinding halt now.
The sellers want the money to be paid in newer denominations which should be obviously White Money but then that will mean so much of problems for the buyers and so the real estate is expected to be on a slower side for the next few months at least. This means the land prices have to come down or the transactions will come to a halt.
Either way, it is not good for the government at this point of time. So all the hard work and exercise done on the districts reorganization will go waste. The state government was thinking on the lines of use this Real Estate income to get the infra in new districts ready but then Modi disappointed KCR big time!