Major Relief for the Middle Class in Property Registration

The Chhattisgarh government, under the leadership of Chief Minister Vishnu Deo Sai, has provided significant relief to middle-class property buyers. Now, the registration fee for property transactions will be charged only based on the guideline value, even if the transaction value exceeds the guideline value. This decision will not only reduce the registration fee burden for middle-class families but also allow them to secure bank loans based on the actual property value.

Direct Benefits of the New Rule

Earlier, the registration fee was calculated on whichever was higher between the property’s guideline value and the actual transaction value, leading to higher costs for buyers.

For instance, if a property had a guideline value of ₹10 lakh but was purchased for ₹15 lakh, the registration fee was calculated at 4% of ₹15 lakh, amounting to ₹60,000. Under the new rule, the registration fee will be based on the guideline value of ₹10 lakh, reducing the fee to ₹40,000 and saving the buyer ₹20,000.

A Landmark Decision in the Cabinet Meeting

This policy was approved in a recent cabinet meeting chaired by Chief Minister Vishnu Deo Sai. Finance Minister OP Chaudhary highlighted that the decision offers substantial relief to middle-class families. He stated, “This step will enhance transparency in the property market and encourage people to declare the actual value of their transactions during registration.”

Inspired by Madhya Pradesh

The Chhattisgarh government drew inspiration from a similar policy implemented in Madhya Pradesh, where registration fees are charged based only on the guideline value, even if the transaction value is higher. This has led to an increase in the trend of reporting actual transaction values in registration documents.

Issues with the Existing System

Until now, most people declared transaction values close to the guideline value to avoid paying higher registration fees. This practice led to two major issues:

1. Challenges in Securing Bank Loans Banks provide loans based on the transaction value recorded in registration documents. When buyers declare lower transaction values, their loan amounts are reduced.
2. Loss in Property Disputes. In cases of disputes or fraud, compensation is granted only based on the value recorded in the registration document, resulting in financial losses for buyers.

Relief for Middle-Class Buyers

This new rule will benefit middle-class families, who often rely on bank loans to purchase property. They can now declare the actual transaction value in registration documents and secure larger loans.

The policy will also bridge the gap between guideline values and actual transaction values, bringing greater transparency to the property market.

Market Transparency and Advantages

This reform will bring several positive changes to the property market:

1. Accurate Property Valuations. Buyers and sellers will feel more confident in declaring the actual transaction values.
2. Legal Protection In case of disputes, buyers can claim compensation based on the actual property value recorded.
3. Increased Revenue for the Government Accurate reporting of property values will help the government track actual market trends and boost revenue.

Impact on Rural and Urban Areas

This decision will positively impact both rural and urban areas of Chhattisgarh. In rural areas, property transactions often involve significant differences between guideline values and actual transaction amounts. With this new rule:

• Rural buyers can now record the actual transaction amount in registration documents without fear of paying higher fees.
• Urban middle-class families will find it easier to purchase property with higher bank loan approvals.

Impact on the Banking System

Banks will now provide loans based on actual property values, ensuring sufficient financial support for buyers. This change will benefit both buyers and banks, as the loan process becomes more transparent and secure.

Future Plans

To ensure the success of this policy, the Chhattisgarh government may implement additional measures:

1. Regular Updates to Guideline Values Revising guideline values annually to reflect market trends.
2. Digital Registration Introducing digital property registration to enhance convenience and transparency.
3. Awareness Campaigns Educating buyers and sellers about the benefits of this policy.

Finance Minister’s Statement

Finance Minister OP Chaudhary commented, “This decision by the Chhattisgarh government not only brings relief to middle-class families but also promotes transparency and trust in the property market.”

Public Response

The general public has welcomed this decision with enthusiasm. Many middle-class property buyers have expressed their satisfaction. Anil Gupta, a resident of Raipur, said, “Now, we can declare the actual value of the property without hesitation and secure higher loans from banks.”

A Step Towards Property Market Reform

This reform by the Chhattisgarh government is a significant step towards creating a transparent and reliable property market. It will streamline property transactions and support middle-class families in achieving their dreams.

This decision exemplifies the progressive policies of the Chhattisgarh government under the leadership of Chief Minister Vishnu Deo Sai. It promises to address economic challenges and provide a new direction to the state’s property market.