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SUBMITTED BY:
Noopur Toshniwal (UC 3406)
School of Building Science and Technology, CEPT University
Guide
Abstract
Ready Reckoner for Property Valuation is commonly known as Jantri and Annual Statement of
Rates. Jantri is the government document which specifies the market price of land and buildings.
Stamp Duty is payable at the time of transfer agreement according to the Jantri Rates. The rates in
Jantri are not scalable. With these lacunae in the Jantri system the value of property reduces. Jantri
should be more accurate and scientific and its data should be real time. Today, properties are being
bought to invest black money which is thereby pumping black money in the market. So if the Jantri
rates reflect the prevailing market rates, the black money can be stopped to a certain extent in the real
estate market. Therefore, for proper valuation, these guidelines should be correctly framed and
justified. So there is a need to evaluate the guidelines for implementation of Jantri. This study began
with review of the literature related to the topic. Subsequently, case studies, Sola TP Scheme 42 and 43
were chosen after churning through the selection criteria decided keeping in mind the Guidelines of
Jantri 2006. This was followed by the physical survey at the selected case studies. Primary data was
then collected through physical survey and opinion survey, whereas the secondary data was made
available through the documents or reports from the Government office. This research work mainly
deals with the evaluation of Jantri 2006 guidelines. The Jantri guidelines were compared with the
current market scenario.
1. Introduction
Ready Reckoner for Property Valuation is commonly
known as Jantri and Annual Statement of Rates.
Jantri is the government document which specifies the
market price of land and buildings. Stamp Duty is
payable at the time of transfer agreement according to
the Jantri Rates. In this document price of each land is
decided by revenue department of state government
depending on its location. Stamp Duty is the fixed
percentage of tax payable to the government on
registration of each property ownership transaction.
Even the Central Governments Income tax department
considers Jantri price for the purpose of Capital Gains
tax calculation. The objective of the preparation of
Annual Statement of Rates (Jantri) is to assist citizen to
arrive at an appropriate methodology for their property
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valuation.
In year 1999, Gujarat Government prepared the first
Jantri. These Jantri prices were not scalable and nonscientific, which means there was no mechanism to
update them with changing market scenario. Year 1998
to 2003 saw a major period of recession in Ahmedabad
which included a devastating earthquake in year 2001 &
a small period of social unrest in 2002. Land prices had
plummeted and by year 2003 all cities of Gujarat
witnessed heavy recession. In 2006, the Jantri was
revised. In present system certain value zones are
established at macro levels, but within the same value
zone the land prices of all the plots cannot be same. The
price of Residential, Commercial (shops), Offices, Open
land and Agricultural Land have been specified
separately for every value zones created in T.P.
schemes. A New Jantri Draft proposed for 2011 is under
making by Superintendent of Stamps & Valuation
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Department, Gujarat State.
Noopur Toshniwal (UC 3406)
School of Building Science & Technology, CEPT University
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Cost per
Sq.mt in Rs.
5000
6000
3000
4500
3000
Rates to be considered as
per value of the respective
zone
Deduct 10% as per Annual
Statement of Rates
Increase by 10%
Increase by 20%
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% Rate Increase
863.64
681.82
275.00
240.00
566.67
316.67
616.67
850.00
683.33
325.00
280.00
560.71
400.00
571.43
900.00
718.18
300.00
260.00
629.17
400.00
650.00
Residential
(G+5)
3
4
5
Rate/Sq.Mt
in `
10894.56
SOLA TP SCHEME 43
Built Up Area
Sales Deed
Rate/Sq.Mt
(in Sq.Mt)
Amount in `
in `
153.26
1500000
9787.29
163
1950000
11963.19
135.42
1450000
10707.43
155.58
1500000
9641.34
145.58
1500000
10303.61
158.84
2300000
14479.98
163
2500000
15337.42
2700000
13138.69
161.62
1600000
9899.76
205.5
The above table shows the Rate per Sq.Mt for Residential G+5 Flats/Apartments
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For TP Scheme 42 and 43, the red and green highlighted cells respectively show that the classification of
residential projects as per their area is not justified as it is higher in case of lesser area and vice versa.
The Jantri guideline does not reflect the current market scenario
% Rate
69.12
68.42
Existing Scenario
Jantri Percentage 75
68.64
68.14
67.57
3
Samples
The above chart shows the % rate of first floor shop to the rate applicable to the shop in the respective value
zone in commercial complexes in TP Scheme 42
Average rate come out to be 68.38% instead of 75% which is mentioned in the Jantri
The Jantri guideline gives a higher % rate and does not reflect the current market scenario
% Rate
57.71
56.96
57.99
57.03
Existing Scenario
Jantri Percentage - 70
58.42
3
Samples
The above chart shows the % rate of second floor shop to the rate applicable to the shop in the respective value
zone in commercial complexes in TP Scheme 42
Average rate come out to be 57.62% instead of 70% which is mentioned in the Jantri
The Jantri guideline gives a higher % rate and does not reflect the current market scenario
Similarly it has been done for other guidelines and TP Scheme 43. The results are mentioned in the conclusion.
3.4.VALUERS OPINION SURVEY
Opinion survey among Valuers is carried out on the stipulated guidelines of Jantri 2006. Sample size of this survey is 10
with all the respondents having a minimum of 10 years work experience. Refer Annexure for the Opinion Survey
Questionnaire. Here, responses to all the questions are classified as positive and negative.
SR.NO.
A
B
C
D
E
F
G
H
I
GUIDELINES
Defining the types of construction
Incomplete Structure
Rate of depreciation on old buildings
Carpet Area, Builtup Area
Residential Projects
Basement for Commercial
Basement for Residential
Mezzanine
Shop on first floor & second floor
No
No
No
Yes
No
No
No
No
No
No
No
No
Yes
No
No
Yes
Yes
No
No
No
No
Yes
No
No
Yes
Yes
No
No
No
No
Yes
No
No
Yes
Yes
No
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Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
No
No
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
GUIDELINES
Defining the types of construction
Incomplete Structure
Rate of depreciation on old buildings
Carpet Area, Builtup Area
Residential Projects
Basement for Commercial
Basement for Residential
Mezzanine
Shop on first floor & second floor
Shops having frontage of road
Shops having no frontage of road
Terrace
Open land surrounding the building
Car parking- Parking under closed garage
Car parking-open parking space
EWS Slums or other buildings
Valuation of tenanted property
Property sold by auction or tender procedure
Agriculture land purchased for nonagriculture
purpose
4. Conclusion
The present study has a pragmatic approach to the
evaluation of guidelines for implementation of Jantri
2006. It includes the study of two T.P. Schemes namely:
1. Sola T.P. No. 42
2. Sola T.P. No. 43
The study of T.P. Schemes is carried out to compare the
Jantri guidelines and rates with the current market
scenario. Maps for Land use pattern, Road network,
Types of buildings, etc. are made for each T.P. Scheme
after the physical survey.
The physical survey helped in forming the observations
for positive and negative factors affecting value of a
property. Some of the observations are as follows:
No
No
No
Yes
No
No
No
Yes
No
Yes
No
No
No
No
No
Yes
Yes
Yes
No
No
No
Yes
No
No
Yes
Yes
No
Yes
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
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