PATNA: The city developers have welcomed the government's move to slash the Minimum Value Register (MVR) of land and flats as they believe the new rates will beckon more buyers due to reduced price of land. It is a win-win situation for all - buyers, developers as well the as government - as there will be an increase in the number of registration for properties in the district, believe real estate pundits.
The Patna district administration on Wednesday announced the revised MVR of lands and flats in the district as per which MVR of flats in Patna has been reduced by 10 % to 40% meaning the buyers will now be able to save at least Rs400 to Rs500 per square feet in the registration cost of their flats located at places like Frazer Road, Boring Road and Nageshwar Colony as the value of the land will be less.
Patna has been classified into five zones in terms of MVR of flats. Posh areas such as Frazer Road, Nageshwar Colony, Boring Road and parts of central Patna fall in zone V for which the MVR has been reduced by 10%. Also for Pataliputra, Sheikhpura and Jagdeo Path, which fall in zone IV, the MVR has been slashed by 10 to 15%. In zone III to I, which comprise Kankarbagh, Old Bypass, Ramna Road, Kunkun Singh lane, Shalimar Sweets and remaining parts of the district, the MVR has been slashed from 15% to 25%. The revised rates will be applicable from October 10.
Earlier, several cases were reported in which the MVR was higher than the actual market price of the property. "Even the government, when it acquired land, used to pay compensation to the owners which would increase manifold from the market price of the land due to the high MVR," Builders' Association of India (Patna chapter) general secretary N K Thakur said.
But the reduction in the MVR has definitely brought relief to the government. Thakur further said that many persons, who had bought property, did not turn up for their registration as they feared the registration cost would burn a hole in their pockets.
"But after the announcement, I have got several calls from my customers to know about the actual amount to be paid as registration charge," Thakur said.
The district administration on Wednesday also reduced the MVR for agricultural land by 30% compared to the existing circle rates whereas the MVR of land in developing zones has been reduced by 20% to 22%.