For the first time the registration of houses and villas in the gated neighbourhoods has been included with the guidance value that ranges between Rs. 500 and Rs. 1,000 per sq. ft.

R. Shivakumar, President, FKCCI, has stated that the revised guidance value rates, up by 30 to 50 per cent, for property is too high. For the first time the registration of houses and villas in the gated neighbourhoods has been included with the guidance value that ranges between Rs. 500 and Rs. 1,000 per sq. ft.

In a press release, he says, “The effect of the rise is that the property values will go up by around 30-50 per cent. Low and middle income groups will be discouraged from buying property. Developers will naturally load the increase on the buyers.”

How it will affect the commercial property in each locality is to be ascertained. Business and commercial property will be affected the most. It is very difficult to generalise the extent of the hardship. At a time when inflation is already pinching people’s pockets and the manufacturing sector is sluggish, this was an inopportune moment to raise revenue, he said.

All the revision has been necessitated in order to find the finances for the food security scheme.

The Government should concentrate more on providing incentives for increasing production and creating employment opportunities rather than funding money for subsidies and freebies. It is all being done as a pre-poll measure. What is needed at this moment is a more rationale policy of incentives which boosts economic growth, provides employment and increases the GDP. The present time is not for making such experiments.

We should think on a scientific basis wherein both industry and Government should benefit, he added.