Increase in guidance value for properties in Karnataka kicks in

A expected, new rules have drawn flak from across industries.

The move by Karnataka government to increase its revenue inflow by close to Rs 900 crore by increasing the guidance value of properties between 30-50% kicked in the State and as expected drew flak from across industries.

"At a time when inflation is already pinching the people and the manufacturing sector is sluggish this was an inopportune time to raise revenue. All the revision has been necessitated in order to find the finances for the food security scheme where the prices at which it will be provided are at a very infinitable subsidized price," R Shivakumar, president of industries association FKCCI, lashed out.

He said government should concentrate more on providing employment and incentives for increasing production and employment opportunities rather than funding money for subsidies and freebies.

"What is needed at this moment is a more rationale policy of incentives which push the economic growth, provides employment and increased GDP. The present time is not for making such experiments. We should think in a scientific basis wherein both industry and Government should benefit," Shivakumar, whose industry body represents scores of industries across the State said.

The Congress government which came into power in Karnataka close to three months ago, had promised that  below the poverty line families will get 30 kgs of rice monthly at Rs 1 a kilo. This single measure is expected to burn a good Rs 4,500 crore on the exchequer.

Amidst all the gloom across the real estate sector in India, the property market in Bangalore has been holding steady and delivering good numbers during the past two quarters.

According to industry data, around 7,500 properties are  registered every day across Karnataka vringin in Rs19 crore of which Bangalore city accounts for as much as half of it.