“Proximity factor” great concern for small owners
Proximity pays off. It is common knowledge that the closer a property is to a major source of development, the higher its value. The unspoken advantage enjoyed by adjacent lands now comes at a price, as the state government considers a new policy to fill the treasury by taxing “proximity.”
After paving the way for the 2021 market value review, the Department of Stamps and Registration is expected to pave the way for valuation. The process has remained the same from 2010 to 2020, but 2021 appears to be a game-changer by tapping into unexplored sources of revenue, as Commissioner and Inspector General MV Seshagiri Babu has launched a new process.
Properties with potential for upgrading, but remaining undervalued on paper are those to target. For example, land adjacent to a highway certainly has a higher value. But land with a survey number next to these “high value” properties also enjoys approximately better, if not the same, value, which is not reflected on paper. As a result, the department loses revenue from registering these properties. It is this gap that the department seeks to fill.
Deputy registrars welcome the movement
“It is a welcome decision. People benefiting from the proximity of a high-value property will not hesitate to pay more. It will be a tricky ride, however, where the government seeks to increase its revenues without weighing down the public.” , GV Konda Reddy, The President of the Association of Deputy Registrars of the State of Andhra Pradesh told The Hindu. The contours of the proposal are still hazy, as officials are still working on the finer details. The implementation will only take place after taking into account any objections reported by the public on the website of the department.
The question has, however, raised the jaws of small landowners. “We are struggling to lead a normal life but the government is not inclined to see the reality,” said Pagadala Babu, whose land is located far from the Tirupati-Chennai highway in Vadamalapet mandal, which could now be impacted by the new rule.
Even as the ministry leaves the stakeholders guessing, they are crossing their fingers, worried about the likely impact on them.