Kerala   

Changes in Act will help check realty speculation

The changes recently introduced in the registration of property transactions have put an end to undervaluation and has helped to increase revenue earnings of the government. The real estate market has stabilised. This is most welcome since income has declined because of the global financial crisis. The transparency in transactions has reduced possibility for corruption in the department. Benami transactions would also decline as photos of buyers and verification of their identity is necessary. Loopholes in the rules, which people exploit, are yet to be seen in the new system. The changes implemented in the new system have revolutionised the traditional system of registration which allowed corruption at an unimaginable level.

Kunhikrishnan

Koyilandi

The government’s initiative to re-draft land registration rules is welcome as it is expected to bring down land cost so that the less privileged

can also realise their dream of owing a house. The rules should be so framed that transaction of land never creates profit for the real estate mafia. Increasing the stamp duty, affixing both the buyer’s and seller’s photo in the document, publishing the land ownership details in a website, prescribing a minimum land holding period of five years would definitely bring down speculation on land.

In a country where the volume of black money is equal to that of white money, realisation of these ideals is a distant dream. However, even one good step to bring down benami and hawala dealings on land will be a boon to the majority of the people. Land should be made a basic commodity of human needs. There are over 12,000 approved and qualified valuers and their expertise should be used in finding the fair value of land. Publishing land prices in the web and updating them regularly is a Herculean task and errors are bound to occur.

Ganesan P.N.

Mulanthuruthy

Poor landowners are cheated by the land mafia and real estate agents and brokers, even after the new laws on production of photos and ID cards. There is a mafia operating in this field. This mafia controls the valuation and under-valuation of lands. They read in between the lines and make rules for and on behalf of them. Sometimes, without the knowledge of the land owner, his land is sold. Some of the staff of the registering authority are also part of this mafia.

Why don’t the registering authority insist on the selling party producing the original deeds, instead of the document writer’s papers?

All the papers including the original deed, previous title deeds, no-encumbrance certificates and tax receipts, should be produced by the seller along with his ID card and photo with his thump impression and signature, in front of the registering authority. One month’s time should be given for registration, after submission of these papers by the seller to the registration authority and these papers can be verified by any public on demand to avoid confusion and disputes later. The actual rate of purchase should also be mentioned in the papers submitted by the document writer. If these steps are taken, benami transactions can be prevented considerably.

P. Sankaranarayanan

Petta

The maxim, “killing the goose that lays golden eggs” is an apt description of the latest move by the government. Although, the changes introduced in the registration of property transactions, particularly with reference to ending benami transactions are welcome, the fact is, after this move land dealings have drastically come down. The decision to fix fair value to land for ensuring clean and transparent dealings does not seem to have been done based on any scientific and practical thinking. Now that we are in the midst of a global recession, which Kerala definitely cannot escape, suitable changes have to be made to stimulate the real estate segment for revenue inflow into the government coffers. The government policy seems to be “making hay while the sun shines” which is not sustainable in the long run. R. Unni Krishnan

Edappally

At present, there is no restriction on the same person purchasing any number of plots anywhere in the State. One can buy plots in any district, and if not declared, nobody bothers. Why not fix a limit that one person can be the owner of only three or four plots anywhere in the State?

Sreelakshmi Sankar

Kochi

The changes in the Registration Act will not change the basic instinct for corruption in the department concerned and will not help to improve the revenues. It will not affect the big dealers or the big purchaser but only the ordinary man who wishes to purchase land for building his house.

It is not practical to impose a specific market value on the property and it will not be fruitful, because properties, even if they are situated in the same survey number, have variations in value depending upon their shape, structure and amenities.

The Kerala Stamp (Prevention of Undervaluation of Instruments) Act is effective in checking undervaluation of land. Rule 5 explains the principles for determination of the value or consideration of the lands and the registering authority has the power to impound the document at the time of the registration or after the registration, and the same can be forwarded to the district collector for the determination of the value and consideration and the proper duty payable thereon as per Section 45B of the Stamp Act. The collector can determine the real value and the deficient amount is to be paid by the person concerned.

Most of the appeals allowed in favour of the aggrieved party are due to technicalities and lack of procedures adopted by revenue officials.

The demand for another law enactment and amendments in the existing laws without complying with the proper steps and procedures of whatever is stipulated in the present Act and Rules, is baseless and needless.

A. Haridasan

Guruvayur

After implementation of the new rules and regulations such as production of identity cards, affixing of photographs on the deed, details of sureties, income details, registrations in the State have reduced as also the revenue to the State. The number of registrations in the State is less than 30% compared to previous years because of these. This has checked benami transactions and bulk purchase.

The valuation of the land, fixed by the registering authority, is not correct and because of this, the common man suffers a lot. The government must have a re-look of the subject and fix a rate from land to land, and this should not affect the common man. Thripunithura S.N. Panicker

Poonithura

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Cashew Board: Centre urged not to take any hasty decision
State to seek help of M.S. Swaminathan
Christmas festivities in full swing
Changes in Act will help check realty speculation
Hard times
Next issue
March taken out
Pilgrimage fete
Assessment
Today at Sabarimala
‘Excess pesticide use causes crop loss’
Welfare of tribal population to be ensured, says Benoy Viswom
Passenger dies aboard plane
Reforms not to hit language studies: VS
Schwing Stetter launches concrete pump
Interest cut likely to prop up housing sector
Furnishing gallery
LIC division retains top rank
New Bharat Tyres venture
Rekindling memories of times spent together
Security guard held in assault case

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu