BHUBANESWAR: Amid growing concerns over steep increase in land prices, the Odisha government has decided to review the recently revised benchmark land valuation across the state.
Revenue minister Suresh Pujari on Wednesday said a high-level committee will be constituted to reassess the prevailing land prices, with the possibility of a rollback if the hike is found unjustified.
Acknowledging that several complaints are being received from stakeholders over unreasonable increase in benchmark values, particularly in urban areas where land prices have surged sharply, the minister said the government will a take a review of the matter. “We are committed to balancing the interests of buyers and landowners. If discrepancies are found, corrective action will be taken,” Pujari assured.
Benchmark valuation serves as the minimum rate for calculating stamp duty and registration fees, directly impacting property transactions. Last year, the department had directed the formation of valuation committees at both district and sub-district levels within a fixed timeline.
An SOP has been issued, emphasising detailed collection and analysis of field-level data. Land registering officers and tehsildars have been instructed to submit sale statistics and land-related data in prescribed formats for both rural and urban areas.
At present, each district has a committee headed by the sub-collector that evaluates benchmark values based on factors such as previous rates, market trends and price escalation. These valuations are revised every two years as part of routine administrative exercise. However, the recent sharp hikes in certain pockets have prompted the government to initiate a fresh review.
Official sources said the valuation process relies heavily on the ‘sales comparison approach’, wherein recent transactions of similar properties are analysed to determine fair market value. “Other considerations include location, land classification (agricultural, residential, commercial) and usage patterns,” they said.
In urban areas, revised norms also factor in the average of auction bids instead of the highest bid alone, while data from development authorities is used for properties acquired through such bodies.
Higher benchmark values increase transaction costs for buyers but the speed at which the land costs are shooting up, it is becoming extremely difficult for lower and middle income groups to own a house in major cities of the state, sources said. The government’s decision to review the rates signals an attempt to strike a balance between affordability and fair valuation, they added.