Gujarat government postpones implementation of jantri hike to April 15

This decision comes a day after members of real-estate associations met the Ahmedabad district collector and submitted a memorandum seeking postponement and partial rollback of jantri rates. Inspector General of Registration and Superintendent of Stamps Jenu Devan had held a meeting with the real-estate developers on Friday.

On February 4, the government had announced a 100 per cent increase in jantri rates. These rates were being increased after a period of 12 years. After the decision, the developers even met Chief Minister Bhupendra Patel.

Real-estate experts and consultants believe that the move to postpone the implementation of the jantri hike is a “stop-gap arrangement” that will provide real-estate developers, investors and property buyers the opportunity to register ongoing deals as per old jantri rates. According to developers, over 50,000 deals — a majority of which were high-value land deals — got stuck after the state government “suddenly” hiked the jantri rates earlier this month.

“At many places, part payments were made to farmers for buying land. With premiums for conversion of non-agricultural land going up, along with the hike in jantri rates, the farmers wanted extra premiums to be borne by the developers. This would have caused a lot of mess,” said a developer who did not wish to be named.

An international real-estate consultant working in the Gujarat market said that the 38 days of extra time given by the state government will not only help close ongoing property deals for developers and buyers, but it will also help developers buy paid FSI at old rates.

Former chairman of CREDAI National Jaxay Shah welcomed the decision and said, “Very practical and pragmatic step by our empathetic, hardworking and honest chief minister Bhupendrabhai. We thank our respected leaders Prime Minister Narendra Modi and Amit Shah.