The proposed guideline values in Coimbatore are manifold higher than the existing values in most of the places, generating objections from different segments of the society.
For instance, the existing guideline value for Arts College Road is Rs. 2,460 a sq ft (Commercial Area Class I), for Race Course Main Road (Residential Area – Special Type of Land – Class II) it is Rs. 3,500 a sq ft, and for Avinashi Road and Trichy Road (Commercial Area – Special Type of Land), it is Rs. 3230 a sq ft.
Examples
According to new draft values, Arts College Road (Commercial Special Type II) is Rs. 9,000 a sq ft, for Race Course Main Road (which is changed to Commercial Special Type I) it is Rs. 10,000 a sq ft, and for Trichy Road and Avinashi Road (Commercial Special Type I), the value is Rs. 10,000 a sq ft.
K. Kathirmathiyon, secretary of Coimbatore Consumer Cause, says the revision seems to be irrational and the public will start feeling the impact only when they buy and sell at the new rates. Steep increase in guideline values can lead to higher market prices, thus affecting transactions.
Rajesh B. Lund, vice-president of CREDAI – Tamil Nadu, says the proposed values were uploaded just a couple of days ago and hence the public were able to see it only now. In some locations, the proposed rates are unrealistic.
The draft values are drastically high in some places in Coimbatore and even the market value is lower compared to the draft values in these locations.
When buyers invested in land or property, they have to pay the stamp duty on the new value and transaction costs will increase. There are several other taxes that they should pay too. The sellers will also be hit as they need to pay capital gains tax on the guideline value.
Reasonable increase in the values is welcome. Usually, guideline values are 65 per cent to 70 per cent of the market value, he said.
According to an official of the Registration Department here, the public can submit their suggestions and objections to the draft values till November 23.
Details
Details of the proposed values are available at all taluk and sub-registrar offices. Any request for reduction in the values, if supported by valid reasons, will be accepted. The District Collector has recently formed an independent committee that will study the values and suggest modifications before the values are finalised.
