Officials say it can take six months for the normal situation to return

  • Government Order creates confusion about jurisdiction
  • Builders, developers criticise steep increase in guidline value

    BANGALORE: The revised guidance value for properties in Bangalore that came into effect from Thursday has been criticised by the industry even as the number of registrations came down in several sub-registrar offices across the city. The revision is expected to push up the market rates of properties in the city.

    An official in the Department of Stamps and Registrations told The Hindu that although some sub-registrar offices had normal registrations, it was dull in several others. "Documents that had been prepared were registered on Thursday. The number of registration could come down from Monday," the official said.

    The official said that it would take four to six months before the market stabilises with the price following the revision.

    Confusion

    Many officials have sought clarification from their head office as overlapping areas were identified in the government order issued on Wednesday.

    Instances had been reported where an area belonging to one sub-registrar office had been put under the neighbouring office, and the official said such confusions could be cleared. There was no confusion on the guidance value fixed for properties, he clarified.

    According to Karnataka Ownership Apartments Promoters Association president A. Balakrishna Hegde the move to increase guidance value would strangulate the industry that was already burdened with taxes.

    He said, "industry is paying a number of taxes such as service tax, licence fee, VAT and others that amount to 30 per cent of the cost. The revised guidance value would see property prices moving up by another 8 per cent."

    He said the revised rates fixed for apartments by the Central Valuation Committee was anywhere between 50 per cent and 300 per cent depending on the area. The Government should not be harsh on the industry, he added.

    Karnataka Land Developers' Association general secretary R.V. Someshwar said the steep increase in the guidance value at several places was unwarranted and several areas did not deserve such an increase.

    He said, "What will the Government do if market prices of properties crash in future? The CVC should have increased the guidance value in phases."

  •  Source:The Hindu 20th April 2007

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