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PAPER

EVALUATION OF GUIDELINES FOR IMPLEMENTATION


OF JANTRI 2006
GUIDE: PROF. RESHMA SHAH

SUBMITTED BY:
Noopur Toshniwal (UC 3406)
School of Building Science and Technology, CEPT University

Evaluation of Guidelines for Implementation of Jantri 2006


Author

Noopur Toshniwal (UC 3406), Faculty of technology, CEPT University, Ahmedabad

Guide

Prof. Reshma Shah, Faculty of technology, CEPT University, Ahmedabad

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
2
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
2
Department, Gujarat State.
Noopur Toshniwal (UC 3406)
School of Building Science & Technology, CEPT University

1.1. Need for study


The rates in Jantri are not scalable. With these lacunae
in the Jantri system the value of property reduces. The
amount of stamp duty to be paid for property
document registration is also decided from Jantri. So
the stamp duty collection of government is also
reduced. With lower rates of Jantri the loss is to the
customer if the customer wants to avail a loan on the
property. Jantri should be more accurate and scientific
and its data should be real time because it is not only
used for stamp duty but also:
1. When the Government gives land to private party
2. When premium is to be paid for a new tenure land
3. For development purposes eg. Land rate for Sardar
Sarovar Narmada Ltd.
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. This would also
stop price escalation in real estate properties to a
certain extent. Jantri 2006 has guidelines framed for its
implementation. These guidelines are used while
carrying out valuation of a property. Therefore, for
proper valuation, these guidelines should be correctly
framed and justified. So there is a need to evaluate the
2
guidelines for implementation of Jantri.
1.2. Objectives
The objective of this study is to evaluate the guidelines
pertaining to implementation of Jantri 2006 and to carry
out an opinion survey among Valuers and Government
Officials on the stipulated guidelines of Jantri 2006.

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Evaluation of Guidelines for Implementation of Jantri 2006


1.3. Scope of Study
Following T.P. schemes are selected (Ahmedabad
City map attached):
1. Sola T.P. No. 42
2. Sola T.P. No. 43
To carry out an opinion survey among Valuers and
Government Officials on the stipulated guidelines
of Jantri 2006
1.4. Limitations of the Study
The study is limited to two T.P. Schemes in the
western part of the city. Hence, observations are
pertaining to the two T.P. Schemes only
Detailed analysis of only 5 guidelines from Jantri
2006 is done based on the data available
The study does not include the new Jantri that got
st
implemented from 1 April 2011 due to
unavailability of data
2. Literature Review
The following are some guidelines for implementation
of Jantri 2006:
DEFINING THE TYPES OF CONSTRUCTION
R.C.C frame structure: Building constructed on
R.C.C, Columns, beams with Masonry plastered by
cement mortar, flooring of Tiles, Kota stone,
Mosaic or other materials with electrification,
plumbing completed in all respects.
Load bearing structure: Building constructed on
load bearing structure with masonry, plastered on
both side by cement mortar, flooring of
appropriate materials with plumbing etc.
completed with all respects.
Semi pukka structure: Building constructions on
load bearing structure without R.C.C. slab but with
masonry walls, plastered on both sides, flooring,
electricity, plumbing etc. completed with all
respects.
Large scale Industries: Factories building
constructed with steel structure having built up
area more than 500 sq. mt.
Small scale Industries: Factories shed constructed
with steel structure built up area less than 500 sq
mt.
RATES OF CONSTRUCTION
Schedule of rates (SOR) for construction
Construction cost for various structures
RCC frame structure with finishing items
Load Bearing structure
Semi Pucca structure
Large scale industries
Small scale industries

Cost per
Sq.mt in Rs.
5000
6000
3000
4500
3000

Noopur Toshniwal (UC 3406)


School of Building Science & Technology, CEPT University

Schedule of rates for incomplete structure- 70% of


the respective SOR as given in the above table
RESIDENTIAL PROJECTS
For valuing value of
Flat/ Apartments
Built up area up to 100
sq. mt
Between 101 to 200 sq.
mt
201 sq. mt & above

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%

SHOP ON FIRST FLOOR & SECOND FLOOR


While valuing first floor shop in commercial
Complexes, it should be valued at 75 % of the rate
applicable to the shop in the respective value zone
While valuing second and above floors' shop in
commercial Complexes, it should be valued at 70
% of the rate applicable to the shop in the
respective value zone
SHOPS HAVE NO FRONTAGE ON ROAD
80% of prevailing rates of shops in the respective
value zone should be applicable. However, it
should be observed that rate of shops with no
road frontage is not less than the rate of offices
on upper floor. (No reduction for floor and road
frontage for shop in shopping mall & arcade)
OPEN LAND SURROUNDING THE BUILDING
When open land adjoining with flat / office / shop
is purchased, the open land is to be valued at 30%
of rate applicable to developed land value in the
respective value zone. This rate should be applied
on the apartment type building whose composite
rates are applicable

3. Data Collection & Analysis


3.1. Methodology of Data Collection
Identifying source of data
1. Primary data:
o Study of TP Schemes and Prevailing Market
rates - through survey questionnaire (Refer in
Annexure)
o Sales deed data - from SubRegistrar Office
o Suggestion and views from experienced
respondents against stipulated guidelines of
Jantri 2006 Opinion survey (Refer in
Annexure)
2. Secondary data:
o Rates from Jantri 2006 documents
o Jantri 2006

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Evaluation of Guidelines for Implementation of Jantri 2006


3.2. Comparison of rates between existing Jantri 2006 and selected TP Scheme
TP 42 : SOLA ZONE - 1
Type of Property
Jantri Rates (` Per Sq.Mt.)
Existing Rates (` Per Sq.Mt.)
Bungalow
5,500
53,000
Low Rise
5,500
43,000
Commercial Shops (G.F.)
20,000
75,000
Commercial Shops (F.F.)
15,000
51,000
Open Land
4,800
32,000
Agricultural Land
2,400
10,000
Developed Land
6,000
43,000
TP 42 : SOLA ZONE - 2
Bungalow
6,000
57,000
Low Rise
6,000
47,000
Commercial Shops (G.F.)
20,000
85,000
Commercial Shops (F.F.)
15,000
57,000
Open Land
5,600
37,000
Agricultural Land
2,800
14,000
Developed Land
7,000
47,000
TP 42 : SOLA ZONE - 3
Bungalow
5,500
55,000
Low Rise
5,500
45,000
Commercial Shops (G.F.)
20,000
80,000
Commercial Shops (F.F.)
15,000
54,000
Open Land
4,800
35,000
Agricultural Land
2,400
12,000
Developed Land
6,000
45,000

% 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

3.3.Evaluation of Jantri Guidelines with the Current Scenario in TP Scheme


GUIDELINE 1A: DEFINING THE TYPES OF CONSTRUCTION AND SOR FOR CONSTRUCTION
The CIMS hospital is located in Sola TP Scheme 42
Following table gives the details for CIMS hospital
Area in Sq.Mt
12115
Civil Works in ` (Approx.)
21,00,00,000
Construction Cost per Sq.Mt
17,300
Jantri SOR for Construction
5000
Difference
12,300
The above table shows that the CIMS hospital has a higher cost of construction than that mentioned in the
Jantri. So the classification for types of construction should also consider hospital/hotel buildings as they have
more services involved and so more construction cost.
GUIDELINE 4: RESIDENTIAL PROJECTS
SOLA TP SCHEME 42
Built Up Area
Sales Deed
S.N
Type
(in Sq.Mt)
Amount in `
1
82.61
900000
2

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

Noopur Toshniwal (UC 3406)


School of Building Science & Technology, CEPT University

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Evaluation of Guidelines for Implementation of Jantri 2006

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

GUIDELINE 8: SHOPS ON FIRST FLOOR AND SECOND FLOOR


76
74
72
70
68
66
64
62

TP 42: Ground Floor - First Floor Shops

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

TP 42: Ground Floor - Second Floor Shops


80
70
60
50
40
30
20
10
0

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

Noopur Toshniwal (UC 3406)


School of Building Science & Technology, CEPT University

No
No
No
Yes
No
No
No
No
No

No
No
No
Yes
No
No
Yes
Yes
No

RESPONSES GIVEN BY 10 VALUERS


No No No No No No
No No No No No No
No No No No No No
Yes Yes Yes Yes Yes Yes
No No No No No No
Yes No Yes Yes No No
Yes No Yes Yes Yes No
Yes No Yes Yes Yes No
Yes No Yes No No No

No
No
No
Yes
No
No
Yes
Yes
No

No
No
No
Yes
No
No
Yes
Yes
No

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Evaluation of Guidelines for Implementation of Jantri 2006


J
K
L
M
N
O
P
Q
R
S

Shops having frontage of road


Yes Yes Yes
Shops having no frontage of road
No No Yes
Terrace
No No Yes
Open land surrounding the building
No No No
Car parking- Parking under closed garage
No No Yes
Car parking-open parking space
No No Yes
EWS Slums or other buildings
Yes Yes Yes
Valuation of tenanted property
Yes Yes Yes
Property sold by auction or tender procedure
Yes Yes Yes
Agriculture land purchased for nonagriculture
Yes Yes Yes
purpose
Table 1: Valuers Opinion Survey

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

3.5.GOVERNMENT OFFICIALS OPINION SURVEY


Opinion survey among Government Officials 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 working experience. Government Officials from
Superintendent of Stamps & Valuation Department, Gujarat State & Deputy Collector office, Stamp Duty Collection,
Ahmedabad were surveyed. 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
J
K
L
M
N
O
P
Q
R
S

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:

Noopur Toshniwal (UC 3406)


School of Building Science & Technology, CEPT University

No
No
No
Yes
No
No
No
Yes
No
Yes
No
No
No
No
No
Yes
Yes
Yes

RESPONSES GIVEN BY 10 GOVT. OFFICIALS


No No No No No No No No
No No No No No No No No
No No No No No No No No
Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes No No Yes No No No
Yes Yes No No Yes No No No
Yes Yes No Yes Yes Yes No Yes
Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes No No No No No No
Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes No No Yes No No No
Yes Yes No No No No No No
Yes Yes No No No No No No
Yes Yes No No No No No No
Yes Yes No No No No No No
Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes Yes Yes Yes Yes Yes Yes
Yes Yes Yes Yes Yes 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

1. Positive factors for TP Scheme 42


Presence of CIMS hospital serves as an added
facility for the area as it is easily approachable by
people during emergencies.
This TP Scheme is located at the edge of SG
Highway and 2 Kms away from SP Ring Road. NH8 passes from near the scheme. This may add to
the value of a property.
Science city which is a major landmark may add
to the value of the property as the nearby areas
would have all the basic facilities.
2. Negative factors for TP Scheme 42
Presence of Railway track causes noise pollution
& affects life of a building due to continuous

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Evaluation of Guidelines for Implementation of Jantri 2006


vibration. People tend to stay away from railway
tracks & thus value of land near the Railway track
is less than the areas located far away from the
track.
Sola Gam is located at the northern end of the TP
Scheme leading to cleanliness issues & cattle
related problems. The value of property near the
Gamtal area is less.
3. Positive factors for TP Scheme 43
Presence of 30 meter wide road connecting S.G.
Road & S.P. Ring road passes through the TP
Scheme. Major development can be seen in this
area as two of the major roads of the city are
connected through this TP Scheme. This may add
to the value of a property.
Several public services like banks, 24 hour
electricity, water supply for 4 hours daily by
AUDA, AMTS bus stop & bus services are
available in this area for public use. This may add
to the value of a property.
4. Negative factors for TP Scheme 43
Roads located behind the Gujarat High Court are
blocked. Road connectivity and approach roads
to a location are must. Absence of this facility
may decrease the value of a property.
Low Income Housing is located at the northern
end of the TP Scheme leading to cleanliness
issues & cattle related problems. The value of
property nearby is less.
It is found that the zoning in the Jantri is done keeping
in mind the above factors. Zoning done after the study
and Jantri zoning are the same. Jantri rates in a value
zone with positive factors are more than that in a value
zone with negative factors.
There is a lot of difference between the Jantri values
and the prevailing market rates. The rates mentioned in
Jantri are far low in comparison to the prevailing market
rates. Increase in market rates is in the range of 90% to
800%.
Five Jantri guidelines are compared with the current
market scenario by collecting and analysing the data
from TP Schemes 42 and 43 for each guideline. An
opinion survey among Valuers and Government Officials
is also carried out on the stipulated guidelines. The
analysis brings out the flaws in the guidelines showing
that the percentage rate to be considered is higher than
the current market scenario.
The classification for defining types of
construction should also consider hospital/hotel
buildings as they have more services involved
and so more construction cost. For eg. CIMS
hospital located in TP Scheme 42 has a higher
cost of construction than that mentioned in the
Jantri. The difference in cost of construction for
CIMS and that in the Jantri is ` 12300.

Noopur Toshniwal (UC 3406)


School of Building Science & Technology, CEPT University

The classification of residential projects as per


their area is not justified as it is higher in case of
lesser area and vice versa. A smaller flat may be
luxurious and a bigger flat may be simple and not
a luxurious one.
For first floor shops the average rate come out to
be 68.38% and 67.88%, for TP 42 and 43
respectively, instead of 75% which is mentioned
in the Jantri
For second floor shops the average rate come
out to be 57.62% and 58.64%, for TP 42 and 43
respectively, instead of 70% which is mentioned
in the Jantri
For shops with no frontage the average rate
come out to be 63.39% and 63.72%, for TP 42
and 43 respectively, instead of 80% which is
mentioned in the Jantri
For open land surrounding the building the
average rate come out to be 19.56% and 21.40%,
for TP 42 and 43 respectively, instead of 30%
which is mentioned in the Jantri
Major findings indicate that the Jantri rates are lower
because there is no annual revision. A permanent
system is required to be set up in the Government for
an annual updating of Jantri guidelines and rates so that
it reflects the current market scenario at that particular
time.
References
1. S.C. Rangwala; Valuation of Real properties;
Charotar publishing house; India (1996)
2. N K Patel, Jigar Pandya, Bhargav H. Desai,
(RESMA), Impact of Jantri, TOI, Property
Times, Ahmedabad, 30th April, 2006
3. Deputy collector office, Stamp Duty Collection ,
Ahmedabad
4. Superintendent of Stamps & Valuation
Department, Gujarat State
5. Superintendent of Stamps and Valuation
Department Gujarat Estate, Annual statement
of
rates,
2006;
Ahmedabad
Urban
Development Authority
6. Shabana Charaniya; Thesis on Jantri an
exercise in valuation for the implementation of
stamp duty act 1958; SBST, CEPT University;
India (2005)

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