Punjab

HIGHCOURT ISSUES NOTICES TO PUNJAB AND FCR ON FIXING OF COLLECTOR RATES FOR TRANSFER OF PROPERTIES

February 12, 2018 04:29 PM

Chandigarh (Face2News)

PIL seeks fixing of Collector Rates for transfer of properties equal to market price to curb black money being pumped into real estate business: HC issues notices to State of Punjab and its Financial Commissioner, Revenue: 

A division Bench of the HC comprising Justices Ajay Kumar Mittal and A.S. Grewal today issued notices for 16.3.2018 to the State of Punjab and its Financial Commissioner, Revenue, in a PIL filed by Valuers Association (Regd.) represented by its General Secretary, Engineer Kapil Dev of Ludhiana. 

The petitioner has given a large number of instances of allotment of residential plots by PUDA, and auction of such plots also, to substantiate its averment that such allotment price or auction price in various localities of Ludhiana is almost double the Collector rates of adjoining properties. The petitioner-association has prayed that the respondents be directed to ensure the determination of Collector Rates at par with market price of the concerned property, so that utilization of black money in property transactions may be curbed. 

The petitioner association has submitted that under Rule 3-A of the Punjab Stamps (Dealing of Undervalued Instruments) Rules, 1983” empowers the District Collectors to determine the “minimum market value of land/properties, located in the district, locality-wise and category-wise and to convey the same to the Registering Officer(s) for the purpose of levying of stamp duty on instruments of transfer of any property.. Section 3-A lays down several factors, which have to be kept into consideration by the District Collector, while determining the Collector Rates, for instance, “distance from roads, bazaars, bus stand, railway station, factories, educational institutions, hospitals, government offices and shopping complexes.” Further, for the purpose of determination of such Collector Rates, the District Collector has to consult experts from various departments, including from officers of the Department of Public Works (Building and Road), Department of Revenue and Rehabilitation, Punjab Urban Development Authority, Department of Local Government, Department of Rural Development and Panchayats Department of Horticulture / Forest / Town Planning / Industries. 

The petitioner-association has alleged that instead of giving free hand to District Collectors to determine Collector Rates of land/properties, the State Government is giving directions to them to fix the Collector Rates in a particular manner, which is against the rules mentioned above. For instance, the Financial Commissioner Revenue issued a notification dated 6.9.2017, directing all District Collectors to reduce Collector rates of properties in urban areas by 5%, and that of properties in rural areas by 10%. The petitioner-association has alleged that the Collector Rates so determined by State Government are hardly half of the market value of concerned properties, with the result that if a property is worth Rs.2 Crore market value, its transfer shall be registered for only Rs.1 crore, and balance amount of Rs.1 crore shall be paid in black money. In this way, black money is being pumped into real estate business. 

The petitioner has given a large number of instances of allotment of residential plots by PUDA, and auction of such plots also, to substantiate its averment that such allotment price or auction price in various localities of Ludhiana is almost double the Collector rates of adjoining properties. The petitioner-association has prayed that the respondents be directed to ensure the determination of Collector Rates at par with market price of the concerned property, so that utilization of black money in property transactions may be curbed. 

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