New property cell to rev up revision of values

Revision of property values at regular intervals is not plain sailing for the Karnataka government and requires a more out-and-out approach. Property Valuation Cell (PVC), proposed by the state government for revising values, is the recent talk of the town after the amendment of guidance value.

With the new Property Valuation Cell coming into play, the revision of guidance value will settle in a more methodical manner. With the role playing of the property cell, the revision of the guidance value, at the next interval, will be based on careful study of the present real estate activities of the city by officers and experts.

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PVC, which has walked off on an easy street in Maharashtra, intends to achieve the same feat in the Garden City. Aided with a team of highly skilled professionals, the PVC model would be implemented in the state to find out whether it finds its relevance in the state or not and call the shots for it.

The special cell is the need of the hour to bridge the gap between market rates and guidance values in a sap. At present, the Central Valuation Committee is responsible for the amendment of guidance value, after acquiring inputs from various departments.

How property cell will facilitate revision of values

With the revision of guidance value, the Karnataka government intends to accumulate added revenue of Rs 840 crore. The sum would include revenue from Bangalore urban districts via stamp duty and registration fee. With the functioning of the property cell, the revision of values at regular intervals will be a piece of cake.

Functioning of the Property Valuation Cell will guarantee the revenue for the government. The latest revision of guidance value has found its presence in 25 districts of the state. With the aid of PVC, the revised guidance value, next time will impact more districts. In comparison to the last time, when guidance value has hit the roof by 30%, the next revision is likely to make news.

Function of the new cell

In addition to its daunting task of monitoring the actual market rates, the PVC, aided by its special intelligence wing, will also keep a tab on tax evasion during property registration through undervaluation. The cell will be empowered to take immediate action against any kind of complaint from the public and builders in regard to unscientific guidance value rule.

However, the proposal for PVC is not received with open arms by the construction industry. According to property consultants, revising of the guidance value and utilizing the fund for subsidies is not a good move, at a time when the manufacturing sector has lost its pace and inflation is already penny-pinching. A far lucid incentive policy is what is needed that can kick start the economic growth process, generate feasible employment opportunities and offer an upper-hand to the GDP.

The sole purpose of the Karnataka state government for proposing a permanent valuation cell is to give the guidance value revision process an extra edge. With the functioning of the property cell, it will be easy to keep a track of the property values and offer suggestion on guidance value revision at regular intervals.