Implementation of revised property guidance value from October 1: Karnataka Minister, ET RealEstate
BENGALURU: Karnataka Revenue Minister Krishna Byre Gowda on Tuesday said that the new revised “guidance value” of properties will come into force from October 1. On the whole, the revised guidance value will increase by 25 to 30 per cent on an average.
The guidance value is the minimum selling price of a property fixed by the government, depending on the locality and type of structure.
“Registration department should revise the guidance value every year as per the law. However, the guidance value has not been revised for the last five years….. it also leads to black money transactions. Non-revision of guidance value has also indirectly allowed black money transactions. Therefore, the new guidance value will be implemented from October 1,” Gowda told reporters.
Explaining the revision of the guidance value, the minister said in areas where the market rate and the guidance value are similar, the guidance value has been increased by 10 per cent, and in areas where the market rate is 200 times higher than the guidance value, the revised rate has been increased by 20 per cent to 25 per cent.
The market rate in Bengaluru’s Electronic City area is 500 times higher than the guidance value. “While the guidance value for land on the National Highway is 5 to 10 lakh, the market price is more than Rs 10 crore. In such areas the new guidance value has been increased by 50 per cent,” he said.
Also, if the guidance value is higher than the market rate, the authorities have been directed to reduce the guidance value in such areas, the minister said.
The guidance value will be increased from 0 to 50 per cent “case by case” for each region, he said.
On October 1, as a first step, the revised rate at Bengaluru will be implemented. For the rest, the sub committee in each district will discuss and implement the new guidance value gradually, Gowda said.
Noting that there is a law which states that there should not be a huge difference between the guidance value and the market price, the minister said the authorities have been instructed to rectify this shortcoming.
If anyone has objections to the guidance value revision, it can also be submitted. The officials will take note of it and implement the new guidance value, he said.