Undervalued properties: Buyers to get alert

Undervalued properties: Buyers to get alert

Reuters image used for representation

Undervaluation of properties, short levy of stamp duty and suppression of facts about a property during registration are major challenges for the government, which is losing revenue worth crores.

To prevent such practices, the Stamps and Registration Department will file suo motu cases against such irregularities and a liability note will be entered in the encumbrance certificate (EC) of properties where undervaluation is proved.

These were among the measures initiated to prevent revenue leakage following internal audits of offices of the Stamps and Registration Department. The steps, while deterring property owners from resorting to fraudulent practices, will also alert property buyers about any liabilities on it.

Speaking to DH, K V Thrilok Chandra, Inspector General of Registration and Commissioner of Stamps said the department has also written to deputy commissioners of various districts to recover the shortfall caused by undervaluation as arrears of land revenue. “Any undervaluation proved will be entered as a liability note in the EC. This will alert prospective buyers,” he said.

The department, while insisting on an annual audit of all sub-registrar offices, will also deploy teams to perform concurrent audits to detect such shortcomings. During such audits, any cases of undervaluation will be picked up suo motu, he said.

Any multi-dwelling unit coming up on a plot exceeding 500 square metres, will have to apply for the same with a central committee.