Buying your dream home may, in all likelihood, become more expensive from October. The State government has proposed to increase the guidance value, and recently issued a gazette notification in this regard.
Guidance value is the price of a property fixed by the government, and property registrations cannot go below that fixed price. This is also a major revenue source for the government.
Sources in the Department of Stamps and Registrations told The Hindu that the guidance value hike ranges between 5% to 20%. The last revision was in March 2017.
This time around, the guidance value for roads is based on the 2016 satellite map of the city and the Bengaluru Development Authority’s draft Revised Master Plan 2031. This, they said, is more comprehensive and likely to bring in more revenue to the State government.
Sources said that the department had taken into account new growth areas, such as Mahadevapura, Begur, Jala (near Kempegowda International Airport) and Banashankari. It has also taken conscious steps to set right some anomalies in guidance value.
For instance, some large apartment complexes that came under the jurisdictions of two or more sub-registrar offices had different guidance value for various blocks. “We have identified such cases and fixed a uniform rate to avoid confusion and ensure that more revenue comes to the State government,” sources added.
The government is likely to use the additional revenue to waive off crop loans.
As per the Stamps and Registration Act, the guidance value has to be revised every year. However, the revision was postponed this time due to the Assembly elections held earlier this year. The department is set to work on the guidance value, following directions from the State government.
Submit objections by September 15
Citizens can submit their objections to the proposed hike. The last date to do so is September 15. The department will review objections, following which changes, if any, will be incorporated.
“The gazette notification on the proposed hike was issued on August 29. The new rates are likely to be enforced from October 1, 2018, before which the State government will issue another gazette notification finalising the hike in guidance value,” said officials.