The Registration and Stamps department is expecting an additional revenue to the tune of ₹ 3,000 crore to ₹ 3,500 crore during the current financial year consequent on the upward revision of the land prices and registration charges.
The department which saw a sharp decline during the previous fiscal on account of the COVID-19 pandemic is hopeful of the transactions of both agriculture and non-agricultural properties returning to normalcy. As against the normal revenue of around ₹ 7,000 crore in 2019-20, the department reported ₹ 5,200 crore income during 2020-21 due to the impact of the coronavirus.
The sector was however on the revival path, going by the amount of transactions witnessed during the first three months of the financial year. As many as 82,164 transactions of non-agricultural properties, primarily apartments/flats, were witnessed in the first 20 days of the current month fetching an income of ₹ 700 crore. The quantum of agricultural land transactions was no less impressive with 5,000 transactions being reported every day this month.
Senior officials said the government has kept in mind the aspirations of the middle and lower classes while effecting the revision of market values of land and other charges pertaining to registration. The charge per square feet had been increased by 30 % in case of higher range apartments while it had been kept at 20 % in the event of areas where the rates are ₹ 4,000 a sq.ft. or less.
The revision was made consequent on the steep appreciation of land values in different areas after the government successfully put in place the necessary infrastructure. “Market values have not been revised for quite some time. As a result, the gap between the actual prices and book value is too stark and wide. There were 5,000 villages where the book value per acre is ₹ 10,000 before the revision was made,” a senior official told The Hindu.
The department therefore conducted an elaborate exercise to arrive at market values that are at least closer to reality. “The revision will also curtail the scope for unofficial transactions in the interest of genuine buyers and sellers,” the official said.
Asked about the ambitious target of ₹ 12,000 crore set in the current year budget through Registration and Stamps, officials said it was an estimate based on the potential the State had after the infrastructure improved. The department was confident of achieving the target as the transactions are set to pick up further in the coming days.