This has reference to “Property Tax to be Valued Differently” (TOI,Jan.20)
The remedy suggested by the Inspector General of Stamps & Registration is worse than the ailment! It raises doubts and suspicions about the real reasons for the change in the existing system of the ‘Ready Reckoner’!
The proposal by the Inspector General of Stamps & Registration will give rise to ambiguity and scope for different interpretations and discretion in fixing property value giving rise to corruption and loss of revenue to the Government. Of the 15 parameters proposed that will decide stamp duty, only 2 are definitely quantifiable (FSI, and regular shape of property land ) Rest 13 are subject to variable interpretations and pliable enough to be bent in favour of the contracting parties.
The present system of yearly fixation of stamp duty, area- wise, for properties in Mumbai was evolved to eradicate corruption that existed in determining the property value by favouring the parties to a sale deed by undervaluation and extract illegal gratification from them resulting in loss of revenue to the state government. The system is quite scientific, rational and equitable. But what is most important and crucial is that it leaves little scope for discretion or interpretation, thus minimizing possibilities of illegal gratification leading to rampant corruption that existed earlier.
The real modification required in the present system of ‘Ready Reckoner” is to integrate a method of keeping parity with changing property values due to major factors like the current global melt down in economy. It would however appear that instead of a simple adjustment of the property value index, the meltdown is being used as an opportunity to reintroduce the earlier corrupt system of discretionary fixation of value to benefit all concerned including bureaucrats, politicians and builders!
Prakash M Apte
Urban Development Consultant
apteyconsult@hotmail.com