Comments
A delay in the notification of Guidance Market Value (GMV) and finalisation of values below the prevailing market trends has adversely impacted revenue realisation in Karnataka. This has resulted in a suppression of Rs 2,232.40 crore in market value, according to the CAG.
In its report on the revenue sector for the period ended March 2018, tabled in the Karnataka Assembly on Thursday, the CAG has pointed out that sale agreements, deposit of title deeds, the base price quoted by developers, loans sanctioned by banks and income tax deducted at source, were not considered appropriately while estimating GMV.
Anup Francis Dungdung, Accountant General, Karnataka, said the CAG undertook a performance audit on the ‘Assessment and implementation of Guidance Market Value’ in the state. A comparison of values stated in the documents submitted, and the respective final sale deeds in 3,335 cases revealed a suppression of values to the tune of Rs 2,232.40 crore. The consequent loss of stamp duty and registration fee was Rs 149.01 crore.”
The CAG also found inconsistencies in valuation of land, with fully developed sites valued at a lower rate than land under development. “The resultant underestimation amounted to Rs 3,167.52 crore in respect of 13,533 cases of sites/ apartments, with a revenue impact of Rs 189.82 crore,” said Dungdung.
Also the non-assignment of specific values for new projects had led to the undervaluation of 3,237 apartments in 57 projects. The undervaluation amounted to Rs 735.78 crore when compared to the base price quoted by the developer, with the consequent loss of revenue at Rs 48.56 crore.
Stamp duty, registration fee
The CAG also pointed out that adoption of incorrect guidance values, incorrect classification of properties and non-adherence to special instructions in seven Sub-Registrar Offices (SROs) had led to undervaluation of documents in 80 cases, resulting in the short-levy of stamp duty and registration fee of Rs 4.35 crore.
The suppression of facts such as existence of building, facts of development, and deemed possession in seven documents in four SROs had led to a short-levy of stamp duty and registration fee of Rs 2.29 crore.
The adoption of incorrect rates and levy on share of lesser value in 36 joint development agreements in seven SROs had led to a short-levy of stamp duty and registration fee of Rs 2.10 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.