BHOPAL: The Confederation of Real Estate Developers Association of India (CREDAI), Bhopal unit, is contemplating moving the court over the hike in collector guideline rates on property. This is despite the Central Evaluation Committee (CEC), led by IG, stamps and duties, Amit Tomar, reducing the average hike in collector guideline rates for Bhopal to 11% from 14% in its meeting on Saturday.
The District Evaluation Committee (DEC), chaired by district collector Kaushlendra Vikram Singh, originally proposed an average 18% hike in Bhopal. However, in the wake of stiff resistance from CREDAI and local politicians of the BJP, the DEC reduced the proposed hike to 14% after examining the suggestions and objections received over the days.
CREDAI Bhopal unit president Manoj Singh Meek admitted that the hike in collector guideline rates has been less in Bhopal compared to other places in the state, where an average 20% hike was approved. However, he stated that their issue is more fundamental. “We have been insisting that the rates are decided by an independent expert committee, all the stakeholders are consulted while working out the proposal for a hike in rates, and the proposals are based on study, survey, and research rather than speculations and hearsay. But, stakeholders are not consulted, and experts are not included in the meetings held to revise the collector guideline rates. Now that the SC has also advised the inclusion of experts in the exercise to revise collector guideline rates in a case where a public sector undertaking of the MP govt itself – MP Road Transport Corporation – went in appeal in the apex court pleading that collector guideline rates in MP are ‘inflated’ and they have to shell out more money as compensation against the acquisition of land, we hope to get instant relief from the court.”The bench of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, while hearing the case, said, “It would be advisable that the circle rates (collector guideline rates) be fixed by expert committees, which not only have officers from the govt but also other specialists who understand the market conditions. Methodically and scientifically fixed circle rates can contribute to strengthening the economy and boosting tax collections.”
Though the court dismissed the petition, it observed, “It was the responsibility of the state govt to ensure that the rates were neither excessive nor disproportionately low.”
Bhopal MP Alok Sharma, while talking to TOI, said that he has advised the CEC to introduce the Maharashtra model under which a piece of land bought for Rs 1 crore and later sold for Rs 1.30 crore attracts stamp duty on the profit, ie, Rs 30 lakh, rather than the entire amount since stamp duty on Rs 1 crore has already been paid by the seller. CREDAI has cites example of Gujarat, where collector guideline rates have not been raised in the last seven years.
