The Gujarat government, Saturday, passed a resolution to double the existing jantri rates onwards February 6. However, the Builder Association, while not opposing the hike, expressed its displeasure over the immediate implementation of the revised rates.
A memorandum in this regard was submitted to CM Bhupendra Patel by the Builders Association, Monday. CREDAI officials also suggested that the new jantri should be levied onwards May 1, which is also Gujarat Foundation Day.
It was also proposed that projects nearing completion or incomplete should be made exempt from the rule. “In such a case the increase would be a burden on the common man. The hike is bound to lead to a dispute between the developers and the buyer. Therefore, keeping in mind the sanctity of deeds, incomplete projects race towards finish. Added, implementation of the new rates from May 1 would leave the relators with enough time to work out minimal loss arrangements too,” shared Jaxay Shah, member CREDAI.
According to Gujarat Builders Association president Paresh Gajera: “We voiced our common concern that no survey was undertaken before the random hike by 100%. Also, we should have been notified before making the announcement public.”
Toeing the same line, secretary Sujit Idani explained: “In order to determine the market value of any sector, the value of the sales transactions over the last three years should be divided and assessed region-wise. The market value of each area must be fixed relative to the assessment. An ad hoc 100% increase is not a scientific way to go about the hike.”
Other pointers of the memorandum harp on reducing stamp duty by 1 per cent when the unit is sold for the first time; in case of residential flats and shop jantri, only 20% increase over old jantri has been requested.
There are currently 17 lakh residential and 6 lakh commercial properties in Ahmedabad. Municipal commissioner M. Thennarasan has proposed a tax burden of over Rs 500 crore on citizens in the civic budget, arguing that there has been no increase in property taxes in the last decade. He is expected to hold one-on-one meetings with property tax officials.
In the Rs 8,400-crore draft budget for 2023-24 presented on January 31, the municipal commissioner also proposed an increase in the rental tax rate by 5 per cent every year.
Also Read: The Curious Case Of Sabarmati, Now The Second-Most Polluted River
