BENGALURU: Buying a property — a flat, a site or a villa in the state will be more expensive, as the revenue department has decided to raise the guidance value. The revenue department’s move has evoked criticism from builder community and sub-registrars as they contend that there is already a slump in property registrations. At this point the general public would be further inconvenienced with rise in property prices and increased stamp duty.
The sub-registrars contend that the Central Valuation Committee’s move to enhance the guidance value was unscientific and would burn a deep hole in the pockets of those planning to buy property.
Just because Department of Stamps and Registration is one of the highest revenue-spinner, it doesn’t mean the government can fleece the public in the name of revision of the guidance value. An amendment to Karnataka Stamp (Amendment) Bill – 2014 authorised the central valuation committee to revise guidance value. But there should be some rationale. When there is a slump in property registrations, the revision should be nominal if not downward, said a senior sub registrar on condition of anonymity.
Over two lakh flats are lying vacant across Bengaluru, hence revising guidance value would affect realty sector, said a sub registrar and added that officers are struggling to meet the fixed target.
Confederation Of Real Estate Developers Association Of India (CREDAI), Bengaluru, secretary Suresh Hari, said that the move to hike the guidance value is a bad one, especially at a time when the real estate is facing a slump for the last six months.
Guidance value is a tool for the purpose of information on the property transaction and income-tax, but it is used as a tool for higher revenue. The sentiments of CVC committee members are not considered at all, he said and called for a third party valuation for scientific revision of guidance value.
