Building or buying your dream home will be more expensive from October, with the Department of Stamps and Registrations expected to issue a notification hiking the guidance value by 10% to 30% in the first week across most urban pockets.
The hike in guidance value was approved by the Central Valuation Committee on Saturday. The new guidance value rates will come into effect as soon as the final notification is issued, said officials.
Guidance value is the base price of properties in a particular area fixed by the government, and property registrations cannot go below that fixed price. This is one of the major revenue sources of the government.
The draft notification on the proposed hike was issued in the end of August.
Bridging the gap
The new guidance value for properties, approved by the Central Valuation Committee (CVC) on Saturday, aims to bring it closer to the prevailing market rates. Currently, the gap is particularly wide in cities like Bengaluru.
K V Thrilok Chandra, Inspector General of Registration and Commissioner of Stamps, said, “The gap between the guidance value and the prevailing market rates are quite high in Bengaluru Urban, especially in the Central Business District and some niche multi-dwelling units. We have also tried to ensure that the low income group is not impacted.”
The CVC first met on September 24 to discuss the hike in 27 districts and once again on September 29 to discuss the hike pertaining to Bengaluru Urban, Bengaluru Rural and Ramanagaram districts. The draft notification on the proposed hike was issued at the end of August and citizens were given a month to submit objections.
Dr Chandra stated that the CVC, at the meetings, pored over all the objections received from citizens. “While some were frivolous and only stated that the guidance value should not be hiked, some objections were specific to certain multi-dwelling units with some justification,” he said.
The State government, which is looking to mobilise more revenue to fund its social welfare schemes, especially the farm loan waiver, hopes to mope up revenue with this hike. More so since the government recently announced the cut in the cess on fuel.
The department is confident of meeting the revenue target of Rs 10,400 crore set by the State government for 2018-19. As on September 28, the department had mopped up a revenue of Rs 4,992 crore. Last fiscal, the department exceeded the target of Rs 9,000 crore by Rs 41 crore. “We are confident of exceeding the target this financial year as well,” said Chandra.
The major value addition this time around is that the property identity numbers have been integrated with the Revenue Department’s Kaveri system.
Many municipalities have already integrated their PID numbers with Kaveri, while integration of PID numbers under Bruhat Bengaluru Mahanagara Palike is in the advanced stages, said Mr. Chandra. “We have found that in some instances, even the BBMP PID is not updated. With integration, both BBMP and the Department of Stamps and Registrations will be able to update the data and mop up more revenue,” he said and added that once the integration is completed, the department may look at issuing a supplementary notification for Bengaluru.
No hike for Kodagu
The Department of Stamps and Registrations has decided to not hike the guidance value in Kodagu district. The district was recently ravaged by floods and landslips following incessant rains. At least three hoblis were severely affected and many people lost their homes and belongings.
The department had also directed the sub-registrar offices in the district to issue certified copies of sale deeds or encumbrance certificates free of cost. The department will collect data and take a call on enhancing the guidance value here two or three months down the line.
Maulya App to be launched
Do you want to know the guidance value of a particular area? Soon, you will be able to check it with a click on your phone.
The Department of Stamps and Registrations is all set to launch the mobile application ‘Maulya’ to help citizens get the valuations details of any property easily.
Chandra said the app, which will be launched by the first week of October, is GIS based and will be available on both Android and iOS platforms. “Through the app, citizens can know the guidance value for any property or survey number. It will provide all information on the property, including which sub registrar’s jurisdiction it falls under,” he said.