Revanth Reddy: Revise Market Value of Lands in Telangana

 Chief Minister A. Revanth Reddy asked officials to take steps to revise market values of lands in the state. He said the land rates in Hyderabad and all parts of the state have increased significantly but there was no corresponding increase in the income earned by the state government through the stamps and registration department. The vast difference between the actual market value of the lands and the government prescribed market value of lands was the reason for this, the Chief Minister opined.He said the actual market value of lands was manifold higher than the government-prescribed market value and this should be rationalised by revising government-prescribed market value. Revanth Reddy on Thursday reviewed the performance of revenue-earning departments at the Secretariat with ministers and senior officials. He reviewed the revenue collections achieved through departments of commercial taxes, stamps and registrations, excise and mining. He expressed disappointment over departments failing to achieve stipulated revenue targets in the previous fiscal 2023-24.The Chief Minister said, as per norms, the market value of lands should be revised every year under the Indian Stamp Act but the land values were not revised for eight years after the formation of Telangana state. He ordered the stamps and registration department to follow a scientific method in the finalisation of the market values of the lands accordingly in different areas, agriculture lands, vacant lands, plots and apartments.

Revanth Reddy suggested that land market prices should be revised to promote the real estate and the construction sector along with increasing revenue of the state. He suggested them to study the stamp duty which is being collected in other states and take a call on either increasing the duty or reducing it. After the formation of Telangana state in June 2014, the state government did not increase the market value of lands till 2021. The market values that were revised in 2013 in undivided AP remained in force for eight years in Telangana till 2021. Also Read - IndiGo Announces Special Fares on Selected Routes from Indore The state government increased the market value of lands and registration charges, stamp duty in Telangana for the first time in July 2021. The government again enhanced the market value of lands and registration charges for the second time from February 2022. Despite this, there is a huge gap between actual market value of lands and government land values.

Comments: It is a very positive step to increase the state revenue and reduce the black money in real estate transactions. It will lead to higher registration charges and stamp duty. However, he directed the officials to rationalise the stamp duty looking at other states. Other positive impact would be getting higher loan for purchase of plots. There will be reduction in trading activity in land. End users will benefit from this move. Institutional investors and FDI will also be able to invest in real estate of Hyderabad. Real Estate transactions will be more transparent. Investment by NRIs will be easy thus increases in their participation.