Bhubaneswar, Sept. 4: The state government’s decision to hike the value of land in the capital over the past few years has had a knock-on effect on the registration costs, throwing buyers, deed writers, lawyers and stamp vendors into a tizzy.

With ceasework going on at the sub-registrar offices in Khurda district and Khandagiri, there has been no registration of land for the past three days.

Deed writers and lawyers have accused the district administration of making an arbitrary hike, the rates going up by six times in certain areas in and around the state capital, where land, given the hectic pace of building activity, is at a premium. A buyer is supposed to pay 7 per cent of the benchmark value of the land.

While the construction spree between Patia and Nandankanan remains unabated, the stretch between Patrapada and Khurda is poised for an equally big boom, sending land prices soaring.

“In April, the authorities had gone for a 10 per cent hike in land valuation and again a revised rate has come into effect from September 1. Anyone wanting to register land will be required to pay more as fee now,” said president of the Bhubaneswar Notary Association Tusharkanti Mohapatra.

Buyers, too, are a hassled lot. “I have bought a patch of land in Chandaka. When I reached the Khandagiri sub-registrar’s office today I could not get the stamp paper required for registration as the stamp vendors have stopped work,” said Prafulla Behera.

The rates have hit the roof following the revision in land evaluation prices on September 1 after a survey by the district valuation committee headed by the district collector.

Sources said the Benchmark Area Valuation (BAV) for land was introduced in the district for the first time in 2008.

Ever since the exercise is being undertaken every two years. The last one was done in 2010. The registration cost, which is 7 per cent of the BAV, goes up automatically following each revision of price. The district valuation committee is doing the evaluation by taking into account various parameters such as location of land, road connectivity and proximity to educational institutions.

“The biennial revision is made effective from April. Since the survey had not been over till then, this time, the collector, who heads the district valuation committee, had recommended a hike of 10 per cent under its discretionary powers. But, after the survey was over and approved by the state revenue department, the full fledged hike came into force,” said a senior official of the district sub-registrar’s office.

Sources in the district sub registrar’s office said that nearly 400 people register their land at the two registration offices in Bhubaneswar daily.

While the district sub registrar's office generates nearly Rs 50 lakh as revenue, the Khandagiri sub registrar's office generates about Rs 30 lakh everyday.