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Karnataka's Revenue Minister, Krishna Byre Gowda, unveiled a momentous proclamation on September 19 regarding the impending implementation of revised "guidance values" for properties, scheduled to take effect on October 1. These adjustments are expected to result in an average increase of 25 to 30 percent across the board. Minister Gowda expressed the necessity of adhering to the legal requirement that stipulates the annual revision of these values by the Registration Department. Astonishingly, this crucial update had been neglected for half a decade, inadvertently fostering an environment conducive to black-market transactions.
Minister Gowda emphasized the imperative nature of this change by noting that the absence of guidance value revisions directly facilitated transactions involving unaccounted black money. To delve into the specifics of the value adjustments, the Minister elaborated that regions exhibiting parity between market rates and existing guidance values would witness a 10 percent increase in the latter. In areas where market rates soar to 200 times the guidance values, the revised values would see an increment ranging from 20 to 25 percent. He provided an example of the Electronic City area in Bengaluru, where the market rate surpasses the guidance value by a staggering 500 times. Here, the new guidance value will escalate significantly.
Furthermore, Minister Gowda indicated that in cases where the guidance value exceeds the prevailing market rate, authorities have been tasked with reducing the guidance value in those specific areas. The goal is to achieve a balanced approach where guidance values closely align with market realities. Adjustments will be made on a "case by case" basis for each region, permitting flexibility in the implementation of these changes.
The initial phase of this overhaul will take effect on October 1 in Bengaluru. Subsequently, the sub-committee in each district will deliberate and gradually implement the revised guidance values in their respective regions. The minister emphasized the significance of adhering to the law, which mandates a reasonable proximity between guidance values and market prices.
Authorities have been instructed to rectify any glaring disparities in this regard. To ensure transparency and address concerns, the minister stressed that individuals who may object to the revision of guidance values have the opportunity to voice their objections. Officials will duly consider these objections and incorporate necessary adjustments into the new guidance values.
The minister reported a significant surge in property registrations, with 10,000 to 12,000 properties recorded since the successful adoption of Kaveri 2.0 technology. On a remarkable day, a single office managed to register 140 properties, contributing to an impressive revenue increase of Rs 800 crore for the state.
In conclusion, this announcement signifies a significant step in aligning property values with market realities, mitigating the potential for black-market transactions, and promoting fairness in property transactions across Karnataka. The government's proactive approach to revising these guidance values demonstrates a commitment to transparency and accountability in the real estate sector.
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