Meltdown effect: Jantri rates to decrease

The government is reported to have decided to revise the rates of jantri a ready reckoner for evaluation of land prices based on which the stamp duty on real estate transactions is charged, after eliciting views of district collectors at a day-long meeting in Gandhinagar on Thursday.

8220;At the meeting, Revenue Minister Anandiben Patel directed us to revise the jantri rates. She said it should be based on a scientific yardstick and should be close to reality in view of the prevailing market conditions. The new rates will be worked out shortly,8221; said Principal Secretary Revenue P Panneervel. He said the revised new rates will likely be announced in January or February 2009, and will be posted on the website.

Panneervel briefed media persons after the meeting and said the minister has also instructed officials to review the jantri rates every six months in view of the fluctuations in the land prices.

The government had brought the jantri rates

in force on April 1 this year, and the Revenue Minister had announced in the House during the budget session that the rates would be hiked by 10 to 15 per cent every year.

Panneervel said a sample survey conducted recently by his department had revealed a fall of 15 to 20 per cent in the real estate prices in different parts of Gujarat. The current volatile market has led the government to adopt a pragmatic approach and review its earlier decision on jantri rates.

To a query, Panneervel said the government had decided to apply as many as 31 parameters to fix the jantri rates. One of them is to fix the rates based on the prevailing market value of the land in each square km of the area, he said.

8220;There could be three different rates even in a sq km of the area, depending on the importance of the location,8221; he said, adding that the new jantri rates would be determined within three different categories 8211; urban, rural and municipality areas.