Surat: The Surat chapter of Credai raised objections to the proposed increased jantri rates (govt estimated land values) and claimed that they will hurt the real estate sector in the region. The Surat Credai body held a meeting recently and its members strongly opposed the proposed rates.
Developers agreed to submit objections and suggestions for revisions to the govt. Preparations are underway to present these objections to the collector. If an appropriate response is not received, Credai members said they plan to take legal action to stop the implementation of these rates.
“Despite repeated recommendations to update the methodology for revising these rates, the govt doubled the 2011 rates in 2023. Now, in Nov 2024, a further increase of 50% to 100% has been proposed,” said a statement by Credai Surat.
The govt has invited public objections and suggestions on the matter.
Credai Surat chairman Sanjay Mangukiya said, “Jantri affects not just land prices but also stamp duty, FSI cost, premiums for new conditions and more. If the proposed rates are not adjusted, the cost of construction projects will increase by 30-40%, raising the financial burden on buyers. This could lead to stagnation in the construction industry.”
“Claims of the survey being scientific and conducted by advanced methods are baseless. The survey appears to lack thorough fieldwork, and it is unclear who the surveyors consulted or what parameters were considered. It is evident that the govt has not adequately studied the findings of the survey,” said Jignesh Patel, president of Credai Surat.
Assessing the recently announced rates, Credai officials found that the proposed rates are based on the valuations of plots after deducting 40% for town planning cuts and 30% for roads and common open plots. As a result, the listed rates reflect inflated land prices. Similarly, the rates for agricultural and non-irrigated land are set at levels unaffordable to farmers.
Credai office-bearers said city developers have no objection to a transparent increase in jantri rates. However, the proposed rates are impractical and cannot be sustained. Experts and valuers from the city must be involved in a re-survey to determine realistic rates.
