Fearing further dip in revenue from the property registrations stream as well as legal hitches, the Telangana government has dropped the idea of revising market value for property registrations this year.
After demonetization of currency notes of higher denomination on November 8, there was a steep fall in revenue from property registrations in the state. To fill revenue loss, the state government initially hinted increasing market values of land and chief minister KCR also discussed the issue with revenue and finance department officials.
Registration and Stamps department officials fear that if market values – land rates based on which registration and stamp duty is fixed for registering a property – are revised the revenue will further fall as the real estate market has been affected post demonetization.
“There is a lull in the market. Property sellers and buyers are now in a wait-and-watch mode. Buyers especially are hoping for a fall in land and property rates. The government wants to watch the situation for some time,” a senior official of Registration department said.
The other hitch for immediate revision cannot be done as per Registration Act and guidelines on market values, the revision can be done effective from August every year. Official sources said as per the guidelines, market values can be revised once in a year in urban areas and once in two years in rural areas. Generally, the department begins the process in May, complete the process by July and revised rates become effective from August. The last revision of the market values was done in August 2013.
“We have not received any instructions from the government on revision of market values for property registrations,” M Venkata Rajesh, joint inspector general of Registration department told TOI on Saturday.
According to officials, there was sudden dip in revenue of the department after decision of demonetization was announced on November 8 but it recovered to some extent later especially after accepting Rs 500 and Rs 1,000 currency notes till November 24.