Thursday, October 24, 2013

NEED FOR REDUCTION IN GUIDELINES VALUE

NEED FOR REDUCTION IN GUIDELINES VALUE

It is no secret that not only the value of immovable properties have come down considerably for the last several months, but there are no buyers of properties even at the lowered figure. The number of transactions in Sub-Registrars offices throughout the country can be said to be almost negligible. 

This situation is likely to continue for few more months or for one or two years and till the global economic situation stabilizes and the employment opportunities improve.

Though the market value of properties are down by 30 to 40 per cent and the property developers are ready to sell their properties at the reduced prices, the State Governments are still in no mood to reduce the guidelines value of properties fixed by them when the property market was at boom and are turning a blind eye to the ground realities with the result that the  purchasers of immovable properties have to pay stamp duty and registration charges at a higher value as fixed under guidelines value than payable at the prevailing fair market value. This attitude of the State Governments is highly deplorable and can be termed as a crime on the society and the people. 


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At least now when the market value of immovable  properties have come down considerably and the purchasing power of a large number of people is reduced beyond imagination, while the banks have reduced their interest rates on 
housing loans under instructions of Reserve Bank of India, it would nothing but be fair and proper for the State Governments to initiate action without further delay to reduce the guidelines value to fall in line with the market value of properties, In Karnataka, the revised guidelines value of properties as per the revised rates effective from 19.4.2007 is definitely on the higher side. 

It is not the prerogative of the Government to continue maintain the guidelines value fixed by it when the property prices were at their peak even when there is slump in the real estate market. When the government swiftly acts to make upward revision of guidelines value to get more revenue, in the 
same fashion the Government should swiftly act to reduce the guidelines value when the market is on the downward trend.

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