Telangana govt firm on upward revision of land values, but apprehensive of impact
The move aims to generate additional revenue to meet the expenditure from election guarantees, which have drawn criticism due to non-fulfillment. But it has its apprehensions on revising registration values. The dilemma stems from concerns about the overall impact on revenue collection.
Hyderabad: The state government is considering an upward revision of land registration values as part of its resource mobilization initiative. This move aims to generate additional revenue to meet the expenditure from election guarantees, which have drawn criticism due to non-fulfillment. But it has its apprehensions on revising registration values. The dilemma stems from concerns about the overall impact on revenue collection.
It led to considerable hesitation due to concerns that it may add further to slump the real estate market. A drop in registrations, that have already been impacted due to the HYDRAA effect in Greater Hyderabad, could dent the government’s revenue sources.
The income from stamps and registrations this fiscal is estimated to be Rs 18,228.82 crore this year. The entire revenue machinery is seriously working to realise the targets while addressing the concerns. The Government had constituted district level committees to study the gap between the registration values and the market values. The committee headed by the Additional collectors worked on the issues seriously for a couple of months. But the revision programme has lost focus of late. It is said that the whole exercise has been put on the back burner for now.
During his recent visit to Vemulawada, Chief Minister Revanth Reddy highlighted the need for a scientific approach to revising market values, adhering strictly to the regulations of the Registration and Stamps department. He pointed out the yawning disparity between registration values and actual sale price in many areas, stressing that regular revisions are essential to stimulate the real estate and construction sectors while enhancing state revenue. The revised market prices should promote growth and ensure fair compensation for landowners.
Regional Ring Road Project
The State is concentrating now on land acquisition for the southern stretch of the Regional Ring Road (RRR), which will be approximately 189.20 kilometers, covering areas from Sangareddy to Amangal, Shadnagar, and Choutuppal. The state has opted to undertake this project independently, avoiding central involvement.
Farmers have consistently been pressing for fair compensation, with market values now ranging from Rs 50 lakhs to Rs 3 crore per acre, while registration values are considerably lower. Compensation at current values could lead to serious losses for farmers, potentially causing conflicts and protests as happened with the land acquisition exercise at Lagacharla for the pharma industry.
The government’s hesitation on revising registration values also owed to the fact that it would be answerable to the opposition which is out to grill the government in the upcoming session of the State Legislative Assembly likely in the second week of December.
The state’s financial woes, coupled with HYDRAA’s adverse impact, are likely to cause a shortfall in tax revenues from stamps and registrations, as well as non-tax revenues from auctions and sales of government lands and plots.
