Telangana Builders’ Federation Urges Govt To Defer Revision Of Matket Values
Hyderabad, Feb 3 2022: Telangana Builders Federation consisting of seven associations i.e., Greater City Builders, East Zone Builders Association,Kukatpally Builders Association, Uppal Builders Association, Pragathi Nagar Builders Association, Greater West City Builders Association, South Zone Builders Association which consists of more than 900 builders in our federation and many of our member builders are in the active field of construction.
Since the formation of State of Telangana, the Govt. of Telangana is so supportive and encouraging the real-estate industry, law and order is excellent and there is no power-cut. The real-estate industry is carrying out its business without any fear, threats from antisocial elements due to good policing and law and order in control.
Mr.C Prabhakara Rao, President, TBF said, looking at the developments activities many of the people from other states prefer to settle down in the State of Telangana and there is a good business for our realtors and construction industry as entire India is looking at investment in the State of Telangana.
The present revision of market value w.e.f 01.02.2022 is a big blow to construction industry and real-estate industry as in the recent past there was already revision in the market values and the revision was w.e.f. 22.07.2021 surprisingly within a span of six months there is again a revision in market value.
i) The stamp duty w.r.t. conveyance deed was increased by 37.5%and thereby increasing the burden on registration charges by 25%already w.e.f. 22.07.2021.
ii) The market value of agricultural lands and all other properties were increased in the range from 30% to 100%.
iii) The NALA Tax was increased by 50% in GHMC limits and 67% in other areas recently.
iv) Already Covid-19 variant is rampant and many offices are operating with 50% Staff
While taking the decision of revising the market value once-again within a span of six months the views of stakeholders were not considered.
The market of real-estate industry is going slow, Since 6 months as there is very slow process of sales due to Covid-19 pandemic situation and also festival seasons particularly in the month of December and January which are inauspicious where people are sentimental in taking decisions and waiting for good days.
The issue of pre-launch/UDS sales by some un-realistic builders who are not regular in the industry has created lot of confusion and spoiled the image of the industry and unfortunately general public were scapegoat by the fancy advertisements published in Print, Electronic and Social Media and emotionally attracted which will badly got affected the Regular and Real Sale transactions of the real-estate property price market.
The present revision in the market values of real-estate properties in entire Telangana State within a span of six months is greatly effecting directly and indirectly w.e.f. 01.02.2022.
With effect from 22.07.2021, the revision of Market values increased by the government from 33% to 100%, the stamp duty on transfer of property deeds was increased from 4% to 5.5% and the registration charges was increased from 6% to 7.5%. The market value for structure/construction was increased from Rs.760/- to Rs.1100/- per sft (i.e., 45% increase).
Having increased the stamp duty, market values, structure rates, betterment rates and NALA charges in the recent past, and it is not appropriate to revisit market values in the present juncture. At present,increase in market values resulting the abnormal increase in registration charges, NALA charges etc from 01.02.2022 as shown in the Statement enclosed herewith.
While there could be some scope in Revision in MV it should be done after due justifiable and transparent process and in consultation with the industry and the citizens at large. Across the board, an increase in MV by 25% to 50% is not justified and shall be deferred till a proper methodology is involved and followed to arrive at a more reasonable MV.