Stark gap between guidance and market values of properties spurs Karnataka govt. to mull over revision

Considering the great gap between the current guidance value and the dominant market value of the property, a revision of the guidance value of the properties in Karnataka. The movement also comes at a time when the stamps and the registration department declares lower income collection for multiple reasons.

The difference between the guidance value and the market value is particularly sharp in the foothills of the city where demand for agricultural land is very large for real estate development.

The market value is 10 times the guidance value, or more in the Bengalurus districts such as Chickballapur, Bengaluru Güney (formerly Ramanagara) and Bengaluru North (formerly Bengaluru rural) districts. The collection of information of the department found a 60% difference between the guidance value and market value for sites in various city centers.

The last revision of the guidance value in the state takes place in October 2023, while the task of the department allows the guidance to revise the value annually.

Resources in the Revenue Department said that the CBS -based guidance value revision will balance the gap in income collection and that the valuation process will soon begin.

Block black money

“The proposed revision will not only help to increase income, but will also prevent the circulation of black money on the market. Black money is exchanged when there is a big difference between the guidance and market value,” he said. In addition, the sources said that farmers could benefit from a higher guidance value during the acquisition of agricultural lands, or that they could benefit from a better value for their land in other operations.

Sources said that discussions continue to determine the scope of increasing the guidance value. “In the city areas, the development rate for sites, houses, apartments, row houses and villas with the quantum to be developed for agricultural lands is discussed.”

It has been learned that new criteria can be adopted this time in order to increase the guidance values for the properties that are closer to national and state highways, regional roads and 80 ft roads. The debate is also related to increasing the guidance value for apartments – whether the uniform rates will be applied or whether it should be based on the dominant market ratio in the region.

Digital stamps

In the meantime, the department is also trying to increase the income obtained from the recommended application of digital stamps that prevent insufficient valuation in the use of stamp paper in the category of unregistered documents. Recently, the cabinet said that when he approved a Khata policy in which special roads that lead to sites/apartments will be declared as public ways, he would take the Lakhs of the properties with an increase in transactions.

When the Rural Development and Panchayat Raj department released a draft for about 85 lakh property this year and the urban local organs released Khadats for about 30 Lakh property, the department hopes to collect income.