BENGALURU: Revenue Minister Krishna Byre Gowda said on Tuesday that the guidance value of properties is being revised and the new guidance value will come into effect on October 1. The guidance value will be increased up to 25-30%. This is expected to help the state government generate additional revenue of Rs 2,000 crore, he told reporters.
Byre Gowda said according to the rules, the guidance value should be revised every year. But it has not been revised for five years. This is causing loss and injustice to those who sell their land. This has resulted in property value being undervalued at the time of registration by buyers, especially realtors, thereby causing a big loss to the government. That is why the guidance value is being revised, he added.
On the revision of guidance value, the minister said if the market value and guidance value are the same, in such regions, the guidance value will be increased by 10%. If the market value is 200 times more than the guidance value, in such regions, the guidance value will be increased by 20-25%.
In places such as Electronics City in Bengaluru, the market value has increased 500 times over the guidance value. If the guidance value of land near a national highway is between Rs 5 lakh and Rs 10 lakh and the market value is over Rs 10 crore, in such places, it will be increased by 50%, he said.
Glitches in Cauvery-2 software rectified: Min
The minister, however, said if the guidance value is more than the market value, in such places, the guidance value will be decreased.
“We are going to implement the new guidance value on October 1 in Bengaluru. It will be implemented in a phased manner. The cabinet sub-committee will take a decision on the implementation of the new guidance value in other districts,” Byre Gowda said.
Referring to Cauvery- 2 software for registration of properties, he said most of the glitches have been rectified. On average, 10,000 to 13,000 properties are being registered daily. Compared to the previous year, the government earned more than Rs 800 crore in revenue so far this year, he said.