Property registrations to cost a bomb in Telangana
The new rates are likely to come into force from August 1
Hyderabad: The stage is set for a steep hike in registration values of lands and properties across Telangana state very soon. Official sources said the registration value of houses, flats, vacant plots, agriculture lands and commercial properties would be increased in the range of 30 per cent to 400 per cent depending on the location.
The Cabinet sub-committee on resource mobilisation headed by finance minister T. Harish Rao and comprising ministers K.T. Rama Rao, Vemula Prashanth Reddy, Chief Secretary Somesh Kumar, stamps and registrations inspector-general V. Sheshadri and heads of various departments on Tuesday recommended that the government hike registration values of agriculture, non-agriculture lands and residential, commercial properties in tune with hike in market value over the past eight years.
Registration values were last revised in 2013 in undivided AP, leading to wide gap between government value and market value of lands and properties in the subsequent years following the real estate boom. The new rates are likely to come into force from August 1.
After bifurcation of the state in 2014, Andhra Pradesh had revised registration values seven times, sources said. The Cabinet committee which met at the Dr Marri Channa Reddy Human Resource Development Institute (MCRHRDI) here on Tuesday to discuss the issue, pointed out that the registration value in Andhra Pradesh and Maharashtra was 7 per cent, and in Tamil Nadu 7.5 per cent.
The committee noted that due to non-revision of registration values in Telangana state over the past eight years, the gap between government value and market value of lands and properties had increased significantly and it should be narrowed down by hiking registration values.
It said several lakhs of land and property registrations were done at a value over and higher over government prescribed rates and in HMDA limits alone it was noticed that 51 per cent registrations were done in this manner in 2019-20.
The committee observed that property buyers are facing problems in getting bank loans as registration values are much lower than market values. Besides, due to the construction of irrigation projects and launching of new schemes to promote agriculture, the value of agricultural lands across the state had increased sharply.
Similarly, due to the flow of new investments and industries, the land and property values around Hyderabad witnessed a sharp rise and all these factors warrant the state government to hike registration values in tune with market values.
The committee has decided to submit its report to Chief Minister K. Chandrashekar Rao by incorporating these recommendations for his final approval.