THIRUVANANTHAPURAM: The disparity in stamp duty between Kerala and other states, combined with the unscientific fixing of fair value, is making it tough for the middle class to realise their dream of owning a piece of land or acquiring a home. According to realtors and document writers, the high stamp duty in Kerala is one of the primary reasons for the slow pace of land deals in the state.
“Stamp duty in Kerala is 10% of the fair value of the land, against the national average of 5-7%,” the CEO of a real estate firm told TNIE on the condition of anonymity.
“In Kerala, the steep stamp duty is pushing the middle class away from buying land to build a home. An average family’s budget for buying land would be Rs 40-45 lakh. If someone looks to buy a piece of land for Rs 40 lakh, they have to pay Rs 4 lakh as stamp duty.
How will they approach a financial institution?” he wondered. Registration officials pointed out the unscientific way of fixing fair value as another reason for lower document registrations. Though the government has started to resurvey of lands, a majority of districts remain out of its purview. It is village officers who fix the fair value.
Document writers allege that there have been cases in which high fair value was fixed when the market rate was lower and vice versa. “In most cases, the officers do not take into account the nature of the land before fixing the fair value,” Anayara R K Jayan, the president of All Kerala Document Writers and Scribes Union, told TNIE.
“Fair value has to be fixed based on whether the land is residential, commercial, agricultural, or the government’s and whether it is situated in a municipal or corporation area. At present, revenue officials just fix the land value based on survey numbers.
At Aryanad, which is 48 km from Thiruvananthapuram city, the fair value of land is Rs 2 lakh for a cent even though the market value for a cent is just Rs 8,000,” he said. Registration department officials feel that a joint team comprising their staff and those of the revenue and finance departments should be formed to remove disparities. “The resurvey will take time. If the government acts quickly, there will be better results,” said the registration department official.