Registering a property continues to remain a pricey affair in Secunderabad Cantonment Board (SCB). While SCB does not have the scale of a municipal corporation like GHMC, its transfer duty charges are exorbitant, which is a burden for the public. This is despite the State government having urged the Board to reduce transfer duty fee from 5 per cent to 1.5 per cent in SCB area.
To boost real estate, the government last year reduced transfer duty from 5 to 1.5 per cent and urged the SCB authorities to do the same. So far, there is no development on this issue and the residents here blame authorities and SCB board members for not taking up the matter ‘aggressively’ with Director-General, Defence Estates and Ministry of Defence, Government of India.
As a result, SCB now charges 9.5 per cent towards stamp duty, transfer duty and registration fee while the same in areas falling under municipalities is 5.5 per cent. Under SCB, stamp duty is four per cent, transfer duty is five per cent and registration fee is 0.5 per cent amounting to 9.5 per cent.
Board members said that the issue has to be taken up with defence officials in Delhi. “We had sent memorandums requesting for immediate reduction to the Ministry of Defence. SCB authorities and local representatives including MLAs and MPs have to take up the issue further in the interests of public,” says board member, J. Pratap.
Transfer duty is a surcharge on stamp duty paid by customers during registration of properties. At present, duty on transfer of property payable on all sale deeds of flats and apartments in municipal areas, including lands in selection, special-grade municipalities, GHMC and all gram panchayats in the State is 1.5 per cent while SCB charges five per cent.
Board officials point out that by charging transfer duty, SCB earns close to Rs. 12 crore every year. “We did not get any assurance so far from the Ministry of Defence about reimbursing the amount, which we are going to lose if transfer duty is abolished,” they said.
Meanwhile, SCB MLA G. Sayanna pointed out that very soon, the issue would be taken up at the highest level. “We are going to meet Defence Minister Arun Jaitley. We will raise several issues that ail SCB and transfer duty issue will be discussed. I am confident that the issue will be resolved in interests of public,” he said.
