Thursday, 27 October 2011

Tamil Nadu Govt. planing to rise Guideline Value every year

  • Thursday, 27 October 2011
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  •   What is Guideline Value? How to ascertain?

    Guideline Value of any land should truly reflect the market value. Guideline values have been fixed for all the areas in the State.  Well established residential areas have only street based guideline values.

    The guideline values have been fixed for each survey number.  This will remain unchanged till the next revision.  Higher value registration will not have not have automatic adoption for subsequent registration. 

    This guideline value help the registering officer in the detection of primacy under valuation of property.      In most of the places, the guideline value is lower than the prevailing market value.  In a few places, the guideline value may be unreasonably higher than the market value.

    Such cases should be brought to the notice of the Inspector General of Registrations for correction of anomalies.  There is a committee at State level which goes into such issues.

    Tamil Nadu Govt. planing rise of Guideline Value every year

    Guideline value is an indicator of the market value of properties.  In Tamil Nadu Guideline values were last revised in  2007 and the previous revision was in 2003.

    The Tamil Nadu government’s treasury received Rs 5,020 crore through stamp duty and registration charges during the last 2010-11 fiscal, and two third of this sum comes from the registration of properties alone.

    In neighboring Karnataka and Andhra Pradesh states had the guideline value been revised every year to be on par with market rates  as is done. The revenues would have been two or even three times more.

    Last four years as many as many places in state land cost increase  two or even three times more. So, government is planning to increase the Guideline Value. Recently one review meeting held at Chennai. At this meeting discuss many issues.

    With the new guideline values in place, the Tamil Nadu government expects to raise another Rs 3,000 crore, that is total revenue expect is Rs. 5,000 crore.

    Valuation sub-committees set up for the purpose of estimating and revising the guideline value in districts are working with the revenue department and local bodies at the field level. Led by the district collector, the sub-committees consisting of staff from local civic bodies and revenue and registration departments have started surveys in all the 32 districts of the state. As many as 578 sub-registrars across the state are supporting the exercise.

     The state government is all set to announce new guideline values for the 4 crore survey numbers in villages and 1.89 lakh streets in corporations, municipalities and town penchants in the state.
    The field survey to ascertain market values must be completed by 2011 December, as per schedule.
    On completion of assessment, the valuation committee will invite suggestions and objections from the public at least twice, before making the new guideline value final.