BENGALURU: The Siddaramaiah government is planning to rake in the moolah by enhancing the guidance value of properties across the state, ranging from 15 to 30 per cent.
Apart from the common man who has to shell out extra stamp duty, even the real estate segment is crying foul as the sector, which saw a slump five years back, has still not stabilized.
In areas like Srirampuram, where transaction of properties are almost nil due to unavailability of vacant sites or land, the guidance value has been revised by 91 per cent.
Even in areas like RPC layout, there is a hike of 67 per cent and Mahadevapura areas close to the IT hub have seen a hike of 57 per cent, said Suresh Hari, secretary, CREDAI.
With the revision of guidance value, the property buyers have to shell out more on property as well as the stamp duty payable to the stamps and registration department, he pointed out.
There was no meaning or logic behind the revision of guidance value every year. Just because the stamp duty contributes to 30 per cent of the total revenue earned by the state, the guidance value should not be hiked, he said.
The government, said Mr. Hari, must not fix the guidance value for earning more stamp duty, but fix the stamp duty itself based on the property value.
Although the Central Valuation Committee (CVC) holds the survey before fixing the guidance value exorbitantly, they take the inputs given by the sub registrars and not actual property value across the city, said Mr. Hari.
The government did bring down the guidance value when the realty sector hit rock bottom a few years back. Now where was the need for the government to hike it year after year, he wondered aloud.
The market was just picking up after a gap of about five years. That does not mean the government should rake in moolah out of it, added Mr. Hari.
The common man has to shell out 6.6 per cent and one per cent registration fee on the property value. What was the logic behind fixing the guidance value based on amenities, he asked, when these were provided by the developer to attract customers?.
