Land, property market values likely to be revised in Telangana
The Committee has already held a series of meetings to explore all possibilities to ensure minimal burden on the general public while initiating measures to increase revenue generation for the government.
Hyderabad: Land and property values in Telangana are likely to be revised with the Cabinet Sub-Committee, constituted to explore resource mobilisation by the State government, strongly pitching for a revision of the prevailing market values. The committee will submit its recommendations and report to Chief Minister K Chandrashekhar Rao soon.
The committee has already held a series of meetings to explore all possibilities to ensure minimal burden on the general public while looking at avenues to shore up revenue for the government. The committee, headed by Finance Minister T Harish Rao with IT and Industries Minister KT Rama Rao, R&B Minister V Prashanth Reddy and Chief Secretary Somesh Kumar as members, met here on Tuesday.
Following the implementation of various welfare and developmental programmes, particularly in the areas of irrigation and agriculture, land values across the State had shot up phenomenally, officials informed the committee members. The registration value of lands, however, has not been revised in the last eight years. Many are registering land and properties as per the government market value while the actual transaction values are much higher, the officials pointed out, adding that this practice had resulted in the emergence of a parallel economy.
Further, officials pointed out that even as per norms, there is a need to review land and property values. Based on these norms, neighbouring Andhra Pradesh revised the land values seven times in the last eight years and increased the registration fee to 7 per cent. Similarly, the registration fee is 7.5 per cent in Tamil Nadu and 7 per cent in Maharashtra.
Hyderabad and Hyderabad Metropolitan Development Authority (HMDA) limits account for a major share of revenue generation through registrations in the State as land and property values in these areas increased manifold in recent years, the officials said.
The development programmes taken up by the State government in the HMDA limits in the last seven years resulted in steady investment inflows into the State. New industries had come up and the capital expanded in all directions. All these factors had led to the real estate boom in the State, officials said.
Citing the 2019-20 transactions in the HMDA limits, officials pointed out that the values of 51 per cent of the transactions in these limits were higher than the government-set registration value. Apart from causing a dent in government revenues, the low land and property values are also posing problems for buyers since banks extend loans based on government market values, they said.
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