Telangana suffers 500 cr revenue loss
Telangana State has suffered nearly Rs 500 crore revenue loss as the Sub Registrars, who were the sole authority of the registration of lands and properties in every sub registrar office, exploited the discriminatory powers given to them in the finalisation of the market value of the lands during registration.
Hyderabad: Telangana State has suffered nearly Rs 500 crore revenue loss as the Sub Registrars, who were the sole authority of the registration of lands and properties in every sub registrar office, exploited the discriminatory powers given to them in the finalisation of the market value of the lands during registration.
Evasion of stamp duty by undervaluing the property during registrations was found in all most all 141 Sub Registrar offices in the state.
As a result, the government had estimated Rs 500 crore revenue loss since 2014. Thanks to the government for awarding discretionary powers to Sub Registrars who are the sole authority for land registrations process.
Taking advantage of the powers given to them under Indian Stamp Duty act 1899, section 47 A, the officials indulged in irregularities by undervaluing the property prices and reduced stamp duty.
Under section 47A, the officials are authorised to reduce property value by 20 to 25 per cent than the market value fixed by government. The special powers were given to Sub Registrars through an amendment in the Stamp Duty Act five years ago in undivided Andhra Pradesh.
Officials said that almost all Sub Registrars misused the powers mostly in urban areas where market value of the lands is high. As per the Act, the property buyer would have to pay 6 per cent stamp duty on the market value of the property.
The officials reduced the land market value and lowered stamp duty burden on buyers by taking bribes, a senior official of Stamps and Registration department told The Hans India.
"The department went through all the files and documents in the recent searches at all registration offices and found many irregularities in collecting stamp duty ' official said.
These kinds of irregularities have been found mostly in the urban areas and district headquarters where market value of the lands was high. More such incidents took place in Hyderabad, Khammam, Warangal, Karimnagar, Ranga Reddy Nizamabad and Nalgonda districts and all major municipalities in the state.
State Commissioner (Registration) Ahmed Nadeem had called for explanation from all Sub Registrars on reducing the market value of lands during registration. Taking serious note of it, Chief Minister K Chandrasekhar Rao had revoked the special powers to Sub Registrars immediately after the land scam unearthed in Hyderabad a week ago.
He also ordered departmental enquiry into the whole episode. The department is preparing a detailed report and will be submitted to the government in a month. Based on the findings, government would take action against all corrupt officials.