Ranchi, Aug. 10: A review of recent exorbitant increase in minimum valuation of flat and land rates in the city and its periphery is on the cards.

Ranchi deputy commissioner R.A. Ekka has convened a meeting tomorrow at 11am where officials concerned would review the rates, that resulted in a slump in the number of property registrations.

Interestingly, not a single flat or plot of land in the city has been registered after the new rates were implemented from August 3. This has directly resulted in a loss of revenue for the state.

“We will review the government’s minimum valuation of flats/land tomorrow,” Ekka said, adding that they would mainly consider main road, approach road, streets in a particular area before bringing the changes.

The rise in minimum valuation is as high as about 140 per cent in some areas, while it is between 50 and 100 per cent in most of them. For example, per square feet rate of a flat for lesser-known Peace Road area has been fixed at Rs 3,096, while the earlier rate was Rs 1,297.

Deed writers, lawyers and even members of the Federation of Jharkhand Chamber of Commerce and Industries had also decided to protest against illogical increase in rates.

Till now, the deputy commissioner’s office has witnessed representation from areas like Peace Road, Lalpur Chowk, Circular Road, Main Road, Ratu Road among other areas where the hike was more compared to other areas.

However, the rate of registration remained same at 5 per cent — 4 per cent stamp duty and 1 per cent court fee. But illogical increase in land valuation rate would now affect all those who got possession of flats but did not register the property, prospective buyers of land and flats, real estate developers among others.

Moreover, a few real estate builders/developers of individual and integrated housing complexes are all set to bear the burnt of “illogical” hike in minimum valuation of flat and land. “The increase is not rational at all,” said Kumud Jha, a renowned developer.

Valuation of land/flats in urban areas is now an annual phenomenon. Authorities are supposed to work out the increase considering last year’s registrations. The mean of five maximum value registration of a particular area is expected to be taken into consideration. But the district administration has apparently not followed the rules. Ekka, who doubles as the registrar, said they had conducted a market survey only.

IG (registration) Gaurishankar Prasad apprehended that the increase in rates might be a fallout of a few registration in last fiscal when a purchaser might have got his flat registered at high rates because of some ulterior motive or to turn black money white.