Land rates set for revision
The state government is all set to revise the rates of registration charges and land values in the state. The district machinery has been giving final touches to the proposed rates. While the rates for rural areas were almost finalised, no final decision about urban areas in the district. Normally, revision in the registration values will be effected from August 1st every year.
Tirupati: The state government is all set to revise the rates of registration charges and land values in the state. The district machinery has been giving final touches to the proposed rates. While the rates for rural areas were almost finalised, no final decision about urban areas in the district. Normally, revision in the registration values will be effected from August 1st every year.
- Increase in land rates in urban areas likely to be 10%, says Sri Balaji Registrations District Registrar VSR Prasad
- Hike in land rates will burden people to buy flats, laments CREDAI member P Rajasekhar Rao
- New rates will come into effect from Aug 1
Last year, the decision for revision of rates was taken in the last minute by the government and as there was no time to work out on various rates, it was decided to increase 5 percent on existing charges then.
The department revises property values every year in urban areas. In rural areas, the values are revised once in two years. The last time it was revised in 2015. This time, the officials concerned have started the exercise much earlier and were working on the revision of rates in a scientific way.
According to Sri Balaji Registration District Registrar VSR Prasad, Chittoor rural may witness highest increase in property value of around 5 to 20 per cent and in Madanapalle rural it may be around 2 to 10 per cent.
The revised land rates for Tirupati rural yet to be finalized and it is expected to be around 15 per cent. In all the urban areas, the revision may be around 10 per cent. The Joint Collector is now examining the file related to revision of land rates.
Sources said that district officials were thinking twice before increasing the land values as the government should acquire many acres of land for various government activities and industries. If the land values are increased then the government has to pay the compensation accordingly
Already, market rates have gone up in the areas of industrial corridor at Thottambedu, Yerpedu, International airport and some other areas. Before arriving at a final decision, the officials were considering various pros and cons of the hike in values.
The department has fixed a target of Rs 171 crore for the district this year, which is much lower than last year. During 2016-17, the department had earned a revenue of only Rs 136 crore as against the target of Rs 224 crore, 60 per cent of the set target. Demonetisation effect has made a big dent in the revenue in the last fiscal. The Registration department is expected to achieve the target with the upward revision in property values.
On the other hand, people were rushing to make registrations before August 1 and the registration offices were witnessing huge rush for the last one week. National committee member of the CREDAI P Rajasekhar Rao said it will burden the people, who want to buy a flat. Already they were in confusion about the GST and its rates.
The realty sector was badly affected post demonetisation. The soaring steel and cement prices have only added fuel to it. Now, it is the turn of property values, he said. The sector was already moaning. Instead of encouraging the sector, the government trying to mint money from it, he criticised.
If realty sector flourishes then the government can easily get Rs 350 to 380 per square feet through various forms. Still it is relying on it for more revenue and the burden has to be borne by the people, he stated.
By V Pradeep Kumar