Two registration charges on flats likely in State

HYDERABAD: The State government is toying with the idea of collecting two different registration charges on transaction of flats in apartment buildings in all the urban areas of the State — one on built-up area of the flat and the other on “undivided share of land” (USL).

The proposal to split the single property of flat into USL and built-up area for the purpose of registration has been made to shore up the revenue of the Stamps & Registration Department, which had been fixed a target of Rs. 5,500 crore this fiscal.

If the measure is implemented, a flat purchaser will obviously have to shell down higher amount for registration. As land in posh localities like Banjara Hills in Hyderabad, Patamata in Vijayawada and Beach Road in Visakhapatnam command a higher market value, the purchasers here will have to pay heavily for registration of USL itself.

Another proposal under consideration was not to accept registration of flats in “semi-finished stage” as is being resorted to by purchasers. Under this plan, the registration charges will be collected on market value of the flat as if it is completed. The view taken is that registration of semi-finished structures leave “discretion” to officials which is unscientific at a time when the system needed rationalisation.

B. Aravinda Reddy, commissioner & inspector-general, Stamps & Registration, said the proposal was only at a nascent stage.
Slump in business

Meanwhile, reports from the 432 sub-registrar offices in the State have indicated a slump in the real estate business, with only Hyderabad (Urban) and Ranga Reddy districts being exception by contributing 60 per cent of the revenue to the department while Visakhapatnam, Vijayawada and Guntur together accounted for 20 per cent.