Karnataka plans to slash guidance values of properties

The Karnataka government is considering a downward revision of guidance values for immovable assets, Karnataka Revenue Minister R Ashoka said Friday.

The minister has sought a report on how and where guidance values can be slashed across the state.

Ashoka believes that a cut in the guidance value would lead to registration of more properties.

Guidance value is the base price on which property transactions have to take place. It was last revised in 2018. Usually, guidance values see an upward revision.

"Covid-19 has hit the businesses hard. I've been receiving many requests from various stakeholders on reducing the guidance value. So, I've asked the officials to give me a report by December on decreasing the guidance values across the state," Ashoka said after a meeting with revenue officials.

The guidance values will go up wherever possible, especially along highways and near economic zones, Ashoka said. "I have also asked officials to look at the possibility of hiking the guidance value along national, state highways and industrial corridors," he said.

The government estimates to generate Rs 12,655 crore this financial year through stamp duty and registration fees.

Also, the government has decided to hire 820 surveyors to fast-track requests pending for survey of properties. "Currently, there are over two lakh applications pending for survey-related work, which has been affected due to staff shortage," Ashoka said. The pendency has resulted in a waiting period of 8-10 months. "So, we have decided to hire 820 surveyors now and another 600 licensed surveyors by December. When all of them are on board, I'm hopeful that we can complete the entire survey work within a few months," he said.

Reacting to questions on road damage caused by rainfall in Bengaluru, Ashoka said that it was normal for potholes to be formed during showers. "Many potholes surface during the rainy season. I will ask officials to fix them", he said, adding that the condition of roads in the city was poor. A meeting with BBMP officials will be held shortly, he added.