BANGALORE: The official cost of land is set to go up 40% in Bangalore, with the government announcing new guidance values, which will be revised every year. The revenue flow will be used to fund the government’s populist schemes.
The government has decided to set up a land evaluation committee to advise the government on revising the guidance value. After it submits its recommendations, it plans to revise the values every year.
“We have already announced the revised rates and have sought suggestions and objections from the public. We may implement the new rates within a month,” the revenue minister told the legislative council on on July 24.
The minister said that the existing land rates in some parts of the state were arbitrary, with values lower than the market value, and there are places where the difference between guidance value and market value of property is more than 100%.
The minister said the government has already increased guidance values by 30% in 25 districts. “We’ll revise the values in other districts in three months,” he added.
Panel to study other states
The revenue minister said an official team is studying the procedure in neighbouring Maharashtra, where the difference between guidance and market value is marginal. For the same reason, he said the new committee will decide on the estimation of the market value rate for the guidelines and prepare a statement showing the average rates for agricultural land and residential commercial industrial sites. The members of the committee will be drawn from departments of revenue survey and settlement, municipal councils or town panchayats, and locals will also be involved in estimating the market value, he added.