Hardly anybody would disagree on the need to revise guideline values for registration of properties in the state.
It was last revised on August 1, 2007, and since then realty prices have undergone a massive sea change in most places. Though a notification to revise guideline values was issued a year later (2008), the government had left it undisturbed hitherto.
Tamil Nadu is among a very few states that do not revise guideline values periodically. Most states revise it annually, said a senior official in the registration department.
Hence, major discrepancies exist between guideline values and market prices of properties in Chennai city. For example, the registration department values the land in Boat Club at Rs 4 crore per ground or Rs 16,690 per sq ft whereas the market value is as high as Rs 7 crore per ground (2,400 sq ft) or Rs 29,166 per sq ft.
Going by the guideline values, anybody could buy land on the arterial Anna Salai at Rs 2.5 crore per ground. The reality is that no land is available on Anna Salai for less than Rs 4 crore per ground. Most of the commercial areas in the city including TTK Road, Radhakrishnan Salai and Poonamallee High Road have already touched the Rs 4-crore per ground mark. Some parts of T Nagar are nearing the Rs 10 crore per ground mark. Still, the state has failed to capitalise fully on this realty boom.
Keeping the guideline values far below the market price encourages black money transaction in property deals. Use of black money for property purchase is very high in Chennai, noted a developer. “It is high time the guideline values were revised,” noted Jayant Hemdev, business director of Hemdev’s, a city-based realty consultant.
He said, “While revising guideline values, the state should also look at slashing the stamp duty from the present eight per cent. All states should work towards introducing a uniform stamp duty.”
Advocate G Shyam Sundar, a legal advisor for several nationalised and private banks, said, “Of late, the registration department carries a disclaimer on its website saying the guideline values on the website are subject to confirmation by the respective subregistrars. It is to educate the customers that if a buyer registers a property for a value much higher than the guideline value, the sub-registrar fixes that higher value as the new guideline value for the region.”
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