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Wednesday, 9 April 2014

FRANK TALK-GOVERNMENT SHOULD RETHINK INCREASING GUIDELINE VALUE



The Karnataka Government has again decided to enhance the guidance value for the Registration of Properties at Bangalore, Its immediate intention is to add on more revenue to the Government. It has become a routine feature, to increase this share of revenue income during every exercise of fund addition. This comes as a stunning blow to the Housing sector which is yet to get settled down to its normal business and sustained growth at Bangalore.

It is clearly evident that the Govt. of Karnataka revises guidance values at regular intervals. When the guidance values are increased, subsequently the prices of property also begins to rise sharply.Whenever the market value is increased, the Government again enhances the guidance value.The guidance value and the market value both try to catch each other but that never happens.

The Government has the social obligation of providing affordable shelters, with all minimum facilities to its citizens. But by such frequent abnormal increases in guidance value, the poor and the middle class are finding it extremely difficult to purchase houses.Further the Government's action fuels the price rise. The cumulative effect of all these increases, force both the buyer and the seller who try to circumvent the legal transactions which leads not only to the accumulation of black money but also incurs huge revenue loss to the State by way of certain modus operandi.

Hence, in the interest of National Economy, the Karnataka Government should be sympathetic to the Housing Sector and shelve the idea of increasing the guidance value for the Registrations till the market is picking up.

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