Undervaluation of land: Kerala registration department slaps Rs 790 cr fine on violators

Thiruvananthapuram: The Kerala registration department has slapped a fine of Rs 790 crore against entities, that undervalued the land while registration. 

The department has issued notices to 2.58 lakh entities. The action is against entities who engaged in undervalued land deals from 1987. 

It may be noted that the fair value of land was fixed in 2010. Many argue that the act of fining for the deals that happened prior to the fair value system is not reasonable. Many are protesting against it. 

The fair value of land witnessed a 264 per cent increase from the rate fixed in 2010. Data also indicates that the fair value system has caused a reduction in land registrations. This also suggests that malpractices have reduced.

Kerala Administrative Reforms Commission recently recommended the state government revise the fair value/price of land every five years. The recommendation came in the wake of the finding that improper price revision has been causing financial loss to the state government.