State quietly withdraws advisory on new property guidance values

Guidelines had attempted to rationalise buying-selling rates

THE VALUES: The notification had envisaged doubling the guidance value of properties in gated communities and also those along national highways. File Photo: Bhagya Prakash K.

In a curious development, a set of instructions, issued through a gazette notification to undertake valuation of properties across the State by the Department of Stamps and Registration, was withdrawn within a few days of its notification.

Among other things, the instructions, issued by the Deputy Inspector-General of Registration (Vigilance) on June 13, had set guidelines for revising the guidance value of properties, including that of commercial, plantation and horticultural crops besides residential and commercial properties, it has come to light now.

These instructions were issued after senior department officials visited Maharashtra to study their guidance value model, sources told

The Hindu , and added that it was withdrawn within a couple of days.

Materials used

Among others, the instruction had details on the mode that would be used for valuation of the properties, including gated communities, villas, residential and commercial sites, agriculture and non-agricultural land. Besides proposing valuation rates of buildings based on the construction materials used, the instructions also had fixed slabs for car parking in apartment complexes.

Apart from doubling the guidance value of properties in gated communities and also those along national highways, the local valuation committees had been directed to increase the rates for registration of apartments by imposing additional fee on apartment complexes over five floors and which also had special amenities.

Proximity to amenities

The instructions had in detail listed such amenities that included properties being closer to ring road, metro station (3 km), airport, railway station and bus station (5 km), and those having helipad, swimming pool, elevator, jogging track, clubhouse/ community hall/ amphitheatre/ reading room/ library, children’s play area, canteen, indoor games area, mall, intercom/ visitor tracking system/ CCTV/ Internet parlour.

Meanwhile, confirming that the instructions were withdrawn, senior official in the office of the Inspector-General of Registration and Commissioner of Stamps said: “We withdrew the instructions after it was found that earlier ones were more suitable in undertaking the revision exercise. The valuation committees are undertaking the valuation based on earlier instructions issued to them.”

Asked if the real estate lobby was behind the backtracking, he said: “No.”

Valuation for villas

For the first time, a separate valuation for gated communities and villas will be implemented during the next revision of the guidance value, a draft of which is expected to be notified this week. “These are special types of properties coming up in Bangalore and we need to have a rationalised valuation for gated communities and villas,” a senior official in the office of Inspector General Registration and Commissioner of Stamps said, adding that the final revision would be notified before August 1 after seeking response from the public.

Since June 1, he said revised guidance value has been notified in 20 districts, including Mysore and Tumkur, in phases while 10 more districts, including Bangalore, would be revised very soon. The last revision in Bangalore was in September 2011.