After deciding to auction unutilised government land, the state government is mulling to increase land values for property registrations. After GST and excise, revenue earned through property registrations is the third highest source of revenue for the government.
Sources said the revised land market values will come into force from August 1 this year if chief minister K Chandrasekhar Rao okays the proposal. The registration and stamps (R&S) department has kept the proposals ready, sources said. “Our department is aiming to achieve Rs 12,500 crore this financial year (2021-22) after revising the land values,” a senior official of the registration department given above information.
The government has plans to enhance market land values for non-agriculture properties between 30% and 50%. While the enhancement will be 30% in the rural areas, it will be 50% in Greater Hyderabad and other municipal corporation areas. For agricultural properties, the hike in the values would be about 20% on the existing rates.
Though the government has powers to revise market values every year under the Indian Stamp Act, land values have not been revised after formation of Telangana. The last revision was done in August 2013 when the state was united.
Official sources said the government could not enhance the land values for the past few years due to a series of elections in the last three years. Though there was a proposal for revision, it was again postponed due to Covid-19 first wave and lockdown. Chief secretary Somesh Kumar, who is also principal secretary of registration department, asked the officials to prepare proposals in February to implement them from April 1 this year. It was again deferred indefinitely due to second wave of Covid-19 and lockdown.
In the last year 2020-21, the government had given a target of Rs 8,000 crore collections to the registration department, but it had earned Rs 5,260 crore through 12.11 lakh documents’ registrations, which was Rs 1,800 crore less than the 2019-20 revenue. The property registrations had to be stopped for three months as the government decided to have agricultural properties’ registration through tahsildars and non-agricultural properties through sub-registrar offices in September last year.
“The state is hopeful of earning a good revenue this year as the real estate sector is set to bounce back within no time, especially in Hyderabad, Rangareddy and Medchal districts. After first wave of Covid-19, we had apprehensions, which were proved wrong,” a district registrar of R&S department said.