Requests Telangana Builders Federation
The Telangana Builders Federation (TBF) urged the State government to withdraw its decision to increase the market value of lands with effect from February 1 or at least reduce the registration charges to four per cent. The Federation stated that the decision puts the future of small builders in jeopardy.
The representatives of seven construction associations which are part of the TBF held a press conference in Hyderabad recently where the Federation president Ch Prabhakar said the decision to raise the market value twice within six months has become a major obstacle to overcome for small builders. He also criticised the State government for coming to a decision to increase market value by consulting only large corporates builders who undertake projects on acres of land.
He reminded that most people buy property from builders who construct apartments within 600 to 1000 sq.yards and the government’s decision has only created more problems for such builders. He lamented that the government was ignoring the small builders who could offer houses at affordable prices. With the recent rise in market value, small builders are at risk of vanishing from the market.
“The Telangana government has been promoting the real estate industry to a great extent since the State formation. The builders too are doing their businesses without any fear or threats from anti-social elements, due to good policing and maintenance of law and order. Seeing the development programmes here, many people from other States are keen to settle down in Telangana.
With realtors having good business opportunities and the construction sector growing, people from across the country are keen to invest in the State. At such a crucial juncture, it would be unfortunate that the government decided to increase market value twice when other States have reduced stamp duty and registration fees,” he said.
* “The real estate sector is in a bad shape and it has completely paralysed for the last six months, due to the Covid-19 and thereafter, the festive season during December and January. On the other hand, some rogue builders started selling properties under prelaunch and UDS schemes which led to utter confusion and also tarnished the reputation of the industry. Unfortunately, the common man is being deceived by the advertisements in print, electronic and social media. As a result, real and systematic transactions in the real estate market have suffered severely,” Prabhakar added.
* East Zone Builders Association president Maram Satish Kumar, Kukatpally Builders Association president Srinivasan, Pragati Nagar Builders Association president Srinivas, Uppal Builders Association president Ramesh, Greater City Builders Association general secretary JT Vidyasagar, Greater West Builders Association president Raja Reddy, TBF treasurer Gopal and others were present.
Postpone for two years
After the recent increase in stamp duty, market values, building charges, betterment charges, and NALA charges, it is not right for the government to enhance the market value again. As a result of the increase in market value, the registration charges and the NALA charges also will increase exponentially from February 1. If market values need to be revised, it should be done in a transparent manner, in consultation with the industry and the people. It is not fair to increase the overall market value by 25% to 50%. It is necessary to find the right method and follow it systematically and postpone it until one finds a fair market value. During this testing times, the industry should be kindly assisted and the increase in market value should be postponed for a couple of years. – T Narsimha Rao, General Secretary, TBF
Unprecedented increase?
- Increased stamp duty by 37.5% as per Convenience Deed. As a result, the burden of registration fees has increased by 25% since July 22, 2021.
- The government increased the market value by 33% to 100%.
- Registration charges increased from 6% to 7.5%.
- Increased stamp duty on transfer of assets from 4% to 5.5%.
- Market value of buildings / structures increased from Rs 760 per sq.ft to Rs 1100 per sq.ft (ie 45% increase).
- Market values of agricultural lands and other assets increased by 30% to 100%.
- NALA tax has been increased by 50% within GHMC and 67% in other areas.
- Due to Covid-19, most offices are functioning with half of their staff.
900 Builders
There are a total of seven associations in the Telangana Builders Federation. They are the Greater City Builders Association, the East Zone Builders Association, the Kukatpally Builders Association, the Uppal Builders Association, the Pragati Nagar Builders Association, the Greater West City Builders Association, and the South Zone Builders Association. A total of over 900 builders are in the Federation. Many of them are active in the field of construction.
