Govt delays fair value: Revenue recovery burden on 2 lakh land owners

THIRUVANANTHAPURAM: Government delayed the implementation of fair value of land despite having a law regarding this. About two lakh landowners have to bear the burden of revenue recovery on account of registration based on undervalued prices.

The registration department has started sending revenue recovery notices to property owners in undervaluation cases from 1986 to 2017. The notice is for non-payment of stamp duty due in proportion to the difference between the value of the property recorded at the time of registration and the value ascertained on inspection by the District Registrar. Property owners can approach the district court against the recovery measures, but due to the amendment brought by the finance department in 2020, 25 percent of the due amount has to be deposited. If there is a favourable verdict, this amount will be refunded. Otherwise, the remaining amount should also be paid to the government.

A law was made in 1967 to prevent the undervalued registration of documents but was not enforced. The Legislature passed the Fair Value Act in 1994, but it came into effect only on April 1, 2010. The registration department announced the tariff price in 1988 and the agreement price in 2005, but none of it was scientific.

If the sub-registrar suspects that the price has been understated in the documents, or if any other person complains, he can give a report to the district registrar. Further steps will be taken by the district registrar after verifying whether the correct price has been recorded based on criteria such as the market value of the land, whether it is suitable for living, transport facility and the price of nearby properties. Further action will be taken in the cases where it is found that the land has been registered at an undervalued price from 1986 to 2017.

Settlement will be a relief

Taking into account the demand of the registration department, the revenue recovery measures will be replaced by the settlement commission, which will be a relief to the people. The District Registrar will be the settlement authority. The cases will be disposed of by granting maximum relief in dues.