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Hyderabad News.AP Govt Getting Ready to Throttle Home Buyers - Market Value of Land and Flats to be Increased Substantailly

Hyderabad News. DC 24.06.2010


(Excl Ventures News.)The state has decided to increase the market value of land to offset the imminent loss to the exchequer due to reduction in the stamp duty.

Land values in urban areas will increase between 10 to 20 per cent. Rationalisation of land values in agriculture and rural areas is also proposed. The registration department is hoping to net about Rs 550 crore.

The Centre forced a steep cut in the stamp duty under municipal reforms by threatening to stop release of funds under JNNURM, if the state fails to comply with its direction to reduce stamp duty to 5 per cent.





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Area Type Old New
Banjara & Residential Rs 35,000 Rs 40,000
Jubilee Hills Commercial Rs 60,000 Rs 65,000
OU Colony Residential Rs 22,000 Rs 35,000
Kukatpally Residential Rs 25,000 Rs 28,000
Secunderabad Residential Rs 50,000 Rs 60,000
Maredpally Residential Rs 45,000 Rs 48,000

(All rates for high-end ****, in rupees per square yard)

* Flats will face composite rate for land, building.

Old: Rs 600 per sq. ft. for RCC structures plus prevailing land cost for undivided share of land.

New: Composite rate will be Rs 1,500 per sq. ft.


Comment :

Does Govt have the legal right to change Market Value of land because registration charge is reduced??? Market value of land and apartments could change with respect to market conditions only.    Hyderabad market has been weak for years and the situation is continuing. So the Govt rate should in fact reduce. For example Govt itself has brought rate of HUDA plots for upcoming auction down to 10,000/sqd from previous figures of Rs.12K to 15k/sqd!  How could market value  then be raised??   This is a fit case for consumer bodies to go to court and stall unreasonable Govt action.



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