Preceding the presenting of the State Budget by CM Siddaramaiah, following is a wish list in the form of suggestions related to Bengaluru real estate and mortgage banking.
- Rationalizing stamp duty
Currently there is a stamp duty of 5% on every real estate transaction. It is suggested to rationalize the stamp duty based on the cost of property with a view to provide relief to Economically Weaker Sections (EWS), Low Income Groups (LIG) and lower strata of Middle Income Groups (MIG) as follows.
(a) Properties up to 50 lakh – Residential properties to encourage affordable housing
(b) Properties above 50 lakh but less than 100 lakh – 5%
(c) Properties above 100 lakh – 6%
- Making registration of ‘Deposit of Title Deeds’ mandatory
All banks, Home Finance Companies (HFCs) and other lenders obtain prime security in the form of Deposit of Title Deeds (DTD) while advancing home loans or loans against properties. DTD attracts stamp duty, but registration of Memorandum Of Deposit of Title Deeds (MODTD) is optional currently. The stamp duty on DTD is fixed at 0.1% on loans up to Rs 10 lakh, 0.2% on loans more than 10 lakh presently. It is suggested to make DTD mandatory by charging a nominal registration fee.
- Developing integrated townships
The flagship activity of BDA to develop layouts for allotting to the public has been a complete failure in the last 4 decades. Mostly the BDA layouts are underdeveloped and lack basic amenties like roads, water and sewage connections, electricity, etc. It is therefore suggested to stop layout formations by BDA/BMRDA and other such authorities and encourage developing Integrated Satellite Townships under Public-Private Partnership model, on the lines of the Bidadi Township announced in 2006, which was shelved later.
- Encouraging Non-Residential Kannadigas to invest
- It is suggested to develop an NRK City within a radius of 10km from Kempegowda International Airport on the lines of Integrated Satellite Township of about 10,000 acres with good infrastructure. It can be easy to get the FDI from developed nations with the help of many influential NRIs for developing the NRK City.
Courtesy/By: Ikcha Sushil Kumar
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13 Feb 2018
