2023-11-09 08:23:17
Himachal Pradesh: Although the market prices of land in Palampur and surrounding areas have increased manifold in the last year, the state government has not yet been able to adjust the land prices accordingly. These prices are determined by the collectors from time to time.
Currently, the market value of land in most areas exceeds ₹ 6 million per channel, while the yen exchange rate fluctuates between 800,000 to 15 million ₹ per channel. As a result, the state loses income from the sale of assets. In many areas, land prices have reached Rs 1.25 billion per channel.
The circle price of Palampur Municipal Corporation Sector 1 and 2 ranges between Rs 90 crore to Rs 1.25 billion. However, if you travel 500 meters further, the travel cost is only Rs 800,000 per canal. After the establishment of MC in Palampur in 2021, land prices have reached an all-time high. However, the state government has not fixed the circular rate proportionately.
Without adjusting the circle rates as per the prevailing market prices, purchase and sale transactions of such assets reached a new high, resulting in creation of black money. The Income Tax Department is well aware of the situation but has not taken any steps to stop the spread of black money in real estate transactions.
A senior revenue official said that the district land fee will be revised as per the recommendations of the concerned SDM, keeping in mind the average value of land during the year. However, the State Government has imposed a cap of 7.5 per cent on the annual tariff increase of the circle, which is a major hindrance in the tariff increase of the circle. This means that real estate circle rates cannot be increased or decreased by more than 7.5 percent of the existing rates. He said that as per government guidelines, the current market interest rate is not a criterion for determining the district interest rate on properties in the state.
According to the information, many Deputy Commissioners of the state government have already recommended immediate increase in the circular rate. However, the government has not yet taken any decision in this regard.
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