Anomalies in stamp duty valuation
|Opened on:||Thursday, 4 August 2011 - 10:58am|
|Last modified:||Saturday, 6 August 2011 - 9:32am|
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Whenever a property transaction takes place, there exists a fair and just methodology for determining the stamp duty leviable, taking care of buyer's, seller's, developer's, as well as government's revenue interests, in the form of the 'guideline market value', published by the government, in accordance with the Karnataka Stamp Act, 1957. This value is determined by a Central Valuation Committee, with powers to review it periodically.
The unfortunate part, in spite of all these, however, is that the government has not given finality to this value, and has on the other hand, most shockingly, created an ‘under-valuation cell (under the Dept of Revenue)’, very clearly it would seem to provide for arbitrary extortion of underhand money from property purchasers, leading to the 'stamps and registration department' gaining the dubious distinction of topping the list of government offenders on “www.ipaidabribe.com”.
This project is an exercise to bring on the needed pressure on the political bosses, hopefully in co-ordination with other civil society organisations, to effect the necessary remedial action.
A petition as per attachment is being sent by to Sri S Suresh Kumar, Hon’ble Minister for Law, Govt of Karnataka, in the coming week. If he continues to hold the portfolio (assuming he continues as a minister), an attempt will be made to meet him soon.
My flat, part of a multi-storied complex of 124 flats, located in Koramangala, was registered on 16/02/05. From about a year after registration, many of us owners started receiving notices from the 'under-valuation cell' of the Dept of Revenue, GoK, alleging under-valuation in the assessment of stamp duty payable.