For registration of properties before introduction of Guidance
Value by Government, the stamp value fixed was on the basis of discretion by
the Sub-Registrar. This discretion power was misused and corruption was rampant
for undervaluing property. There was also a procedure for appeal to the deputy
registrar on the value fixed by the sub-registrar, which power was again misused
for reasons known. Government used to lose lot of revenue by undervaluation of
properties by the property owners in collusion with the officials of the
registering authorities.
It was a good proposal of Government in fixing theguidance values for both lands and buildings avoiding the discretion power of
registering authorities and under valuation by property owners. Another
advantage of the guidance value was arriving at the property tax in the Self-
Assessment Scheme of the BBMP / local body on the basis of guidance values
fixed for various areas of the city.
Guidance value is also useful in Akrama -Sakrama Scheme
for fixing the fine amount for regularizing unauthorized sites and buildings,
and violations from building sanctions. This scheme was withdrawn after
agitations from the residents welfare organizations and law abiding citizens
against the scheme, and agitations also by property owners involved to reduce the fme amounts which were heavy.
There is also a case pending in the High Court against the scheme. The bill
sent by the Government was returned twice by the Governor. The first time it
was returned stating that the scheme will encourage unauthorized developments
and building violations. The observation second time was to submit the bill
only after disposal of the case pending in the High Court. BBMP /BDA which are
responsible for allowing unauthorized constructions and building violations are
keen to introduce the scheme to get huge amounts as fine for regularization.
Periodical revision of Guidance Value may be done once in
two years to update the values according to the increase in market values,
latest trend in potential for development ,etc., and to get more revenue. The
aspects mentioned in this article may be considered while revising the Guidance
Value. As far as possible, there should be no element of discretion by the
officials of the registering authorities to avoid corruption and under
valuation. The details of Guidance Value should be clear to the investor to
plan the investment. The procedure for appeal should be simple and quick.
Hope the Revised Guidance
Value will be clear and simple, the values are almost equal to the market
values, and useful to the investors in real estate.
More,
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