Wednesday, April 6, 2011

New Jantri Revised but not Enough

Facing fire for announcing a 200-1000% hike in jantri rates of land and property, the state government announced a few relaxations on Tuesday, barely five days after the revised rates were declared.
An official release listed a few administrative benefits but offered no drastic review of the exceptionally high new jantri rates.
State government spokespersons Jaynarayan Vyas and Saurabh Patel outlined the relaxations to be granted in new jantri rates as:
* 20% reduction in revised jantri rates for non-completed (slab-less only) constructions

* Previous rate of per annum depreciation on the value of old buildings was 1%, it’s now increased to 1.2% p.a.
* 20% relaxation in the concerned value zone where underground area is being used for commercial purpose, like parking
* Rates for first-floor shops with frontage and without frontage have been differentiated.
* Different rates for covered and open parking for residential and commercial properties
* 10% relaxation in ASR (annual statement of rate) of third and above floors of flats/apartments
* Jantri rates for properties off the main road lands have been kept low, which is likely to benefit people
The government also made it clear that the new jantri rates made effective from April 1, 2011 are meant only for stamp duty purposes and will not apply for calculation of property taxes.
The release also sought to justify the steep hike saying it was only done after extensive surveys and opinions from local developers, leaders, farmers and industry representatives were factored in. 

It further said that the entire process was monitored by the Cabinet sub-committee that had the Finance Minister, Urban Development Minister and Revenue Minister on board.

Incidentally, the government has also not waived stamp duty on homes given away by the state government under various schemes to people of weaker sections.

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