Inadequacies in market value estimates: CAG

Due to inconsistencies, fully developed sites were valued at lesser rates than the land under development. 

Published: 11th October 2019 06:37 AM  |   Last Updated: 11th October 2019 06:37 AM   |  A+A-

By Express News Service

BENGALURU: The performance audit on Assessment and Implementation of Guidance Market Value (GMV) in Karnataka has revealed inadequacies in estimation, delay in notification, non-capturing of market trends and errors in evaluation with respect to market values of properties in the state.

The report of the Comptroller and Auditor General of India on the revenue sector states that the delay in notification of GMV and finalisation of values before the market trends adversely impacted revenue realisation.

Indicators of market value such as sale agreements, deposit of title deeds, base price quoted by the developers, loans sanctioned by banks and income tax deducted at source were not considered appropriately while estimating GMV. Comparison of values in 3,335 cases revealed suppression of value to the tune of Rs 2,232.40 crore and a consequent loss of Stamp Duty and Registration Fee of Rs 149.01 crore.

Due to inconsistencies, fully developed sites were valued at lesser rates than the land under development.  Non assigning of specific values for new projects led to under evaluation of 3,237 apartments in 57 projects and had revenue impact of Rs 48.56 crore.

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