Palampur: Government loses crores in stamp duty
Palampur: Despite a significant increase in land prices in Palampur and adjoining areas in the past one year, the state government is yet to revise collectorate rates. The collectorate rate or circle rate is revised by the Collector from time to time as per recommendations of the Subdivisional Magistrates concerned.
At present, the market rate for land in most areas under the jurisdiction of the Palampur Municipal Corporation is above Rs 85 lakh per kanal, but the circle rates continue to be between Rs 10 lakh and Rs 35 lakh per kanal.
The fund-starved state government is thus losing out on stamp duty to the tune of crores every year. In many areas of Palampur, the land prices have gone up to Rs 1.2 crore per kanal. In wards 1 and 2 of the Palampur Municipal Corporation, the circle rate is between Rs 90 lakh and Rs 1.25 crore per kanal.
However, half a km further the circle rates fall to Rs 20 lakh to Rs 30 lakh per kanal. Since the formation of the Municipal Corporation in Palampur in 2021, the land prices have touched a new high. However, the state government has not revised the circle rates proportionately.
Due to the non-revision of the collectorate rates in accordance with the prevailing market prices, most land deals are being executed by underhand transactions thereby generating black money. Recently, a plot on the outskirts of Palampur was sold for Rs 6 crore, but the sale deed was executed for Rs 2.5 crore, as per the collectorate rate.
The state authorities are well-versed with the situation, but had taken no steps to check the circulation of black money in land deals. The government is losing crores of stamp duty every year not only in Palampur, but throughout the state.
A senior official of the Revenue Department said the collectorate rates were always revised by the collector as per the recommendations of the SDMs concerned by taking into account the average cost of land during the year.
However, the state government has put a cap of 7.5 per cent on the annual increase, which is a big hurdle in enhancing the circle rates. This means the circle rates cannot be increased or decreased by more than 7.5 per cent of the prevailing rates.
The official said for the state government the market rate was not a criterion for fixation of the collectorate rates. The 7.5 per cent cap is resulting in huge loss to the state exchequer.
He added that all tehsildars and naib tehsildars are well-versed with the situation, but they cannot force buyers or sellers to adopt the market rate, as the circle rate is the only yardstick.
Information gathered by The Tribune revealed that at least six Deputy Commissioners in the state have already recommended an immediate increase in the circle rates to the state government, but no decision in this regard has been taken so far.
