THE GUIDELINES for land rates for the coming financial year propose a whopping hike of up to 300 per cent in agriculture land adjoining the City, while within the city both commercial and residential rates have been increased between 15 per cent to 30 per cent in most cases.
The guidelines are open for public scrutiny from Tuesday for the next two days at the district registrar’s office. Objections and suggestions from the public have been invited. Later, it will be sent to the Central Guideline Committee in Bhopal for approval and the new rates would be effective from April 1, 2007.
The proposed increase in agriculture land adjoining the City is perhaps the biggest in the past decade, but officials are justifying it by stating that the slew of townships around the city, the new Master Plan, proposal of Indore Municipal Corporation to include 27 villages within the City limits and the continuing boom in real estate all over the country had jacked up the property prices in outlying areas, and the new guideline would only reflect the changed reality.
It is perhaps the realisation that no one is interested in growing crops in land adjoining the City and all the farmers are going to sell it to developers sooner or later that the differences in rates for irrigated and non-irrigated land for areas around the city has been done away with.
Some of the biggest hike in the guideline rates has been witnessed in agriculture land adjoining the Indore by-pass in Umri Khera, Nepania, Khajrana and Bicholi Hapsi. The biggest increase has been in Umri Khera where the guideline has been increased from Rs 4.40 lakh per hectare to Rs 15 lakh per hectare (more than 300 per cent hike), while in the remaining three mentioned places the hike has been from Rs 35 lakh per hectare to Rs 72 lakh per hectare. In all these
cases, the guideline prices come down for land that is away from the by-pass.
The rates in various upcoming townships on the outskirts of the City have also been fixed and now the posh ones range between Rs 3,000 per square meter for residential to Rs 5,000 per square meter for commercial – like Omaxe, Malwa Country, Parsvnath, while in the lesser known ones rates vary between Rs 1,000 to Rs 1,400 for residential purpose and Rs 1,500 to Rs 1,800 for commercial purpose.
Within the City, guideline in both residential and commercial areas has been hiked a modest 15 per cent to 30 per cent, but there are different rates for houses, shops and offices.
There is another reason for the steep hike in guideline rates – the ever-increasing revenue targets from stamp duty that Indore is being given by the government.
For example, while last year the target was Rs 200 crore, and this financial year it is Rs 300 crore, it is expected that in the coming financial year the target might be as high as Rs 450 crore. In fact, Indore’s share in stamp revenue is around 30 per cent of the entire collection of Madhya Pradesh.