Jantri rise slashed by 50% ,Jantri Update Gujarat

Gandhinagar: Bowing to the pressure of powerful builders, the Gujarat government on Thursday announced a 50 per cent reduction on the increase in jantri which came into effect on April 1, 2011.
The government announcement came three days after state builders met senior ministers in the Cabinet. The government also offered a sharp reduction in the premium to be paid on conversion of new tenure land into old tenure for setting up an industrial or any other non-agricultural project. An official statement attributed the concessions to chief minister Narendra Modi’s “liberal attitude” towards people’s aspirations, especially those who are seeking to build their own house or establish business. “The concession will go a long way in taking care of farmers’ interests too,” the official statement said, quoting government spokespersons Jay Narayan Vyas and Saurabh Patel.
The statement clarified that 50 per cent slash will be applicable on the difference between the old jantri rate and the new jantri. “For instance, in case the old jantri rate was Rs 100 and the increase envisaged on April 1 was Rs 100, there would be a slash of Rs 50. The new jantri rate would be Rs 150.” It would mean that those dealing in real estate would have to pay lesser amount of stamp duty, which is six per cent of the jantri – or government valuation of real estate property. “An industrial, educational or health-related project sought to be put up in new tenure land attracted 80 per cent premium on jantri rate. Now, it will attract 40 per cent premium,” the statement said. Further, till now, conversion of new tenure land into old tenure in order to make it ready for sale to another farmer used to attract 50 per cent of premium on jantri. “The rate has been reduced to 25 per cent. It would enable farmers to easily market land.”

Real estate developers a relieved lot


Ahmedabad: Real estate developers across Gujarat heaved a sigh of relief as the government decided to give a 50% relief on increased jantri rates.
With the revision in the rates, Confederation of Real Estate Developers’ Association of India (Credai)-Gujarat, which is the apex body of developers in the state, is planning to call off the state-wide agitation against the increased jantri rates. Developers were to refrain from registering documents until May 5 as part of the agitation.
Realtors said the issue was not just limited to 4,000-odd developers but also affected consumers. Realtor Uday Bhatt said, several issues related to capital gains tax were a cause of concern for farmers as well as developers. “Now, the rates are more realistic and the incometax burden would be lower,” he said. “It will bring transparency in property deals and at the same time the burden on end-users will be lesser,” said Vijay Shah, former president of Credai.
“The new jantri had put a question mark on viability of proposed residential projects under new slum rehabilitation policy. But with 50% relief, feasibility of such projects have improved,” said realtor Rajesh Brahmbhatt, who intends to develop five projects under the policy in Ahmedabad.