Earlier, the State government collected 9.5 percent of the market value of land towards registration charges across the State. This included stamp duty (7 percent in urban and 6 percent in rural areas), taxes collected by local bodies (2 percent in urban and 3 percent in rural areas) and 0.5 percent transfer charges. Following the Centre's orders to fix the stamp duty at a uniform 5 percent across the State, the government brought down the registration charges to 7.5 percent in urban areas and 8.5 in rural areas.

As per the new norms, the market value of land is fixed uniformly for an entire area by a committee headed by the district joint collector. Unlike earlier, when separate market values were fixed for plots/apartments located in different places in the same area, now the committee will consider a ward or a division as a unit and fix a uniform market value for it. Sources said all joint collectors were reportedly asked to fix market values so as to compensate the revenue loss due to the stamp duty cut. The registration charges for apartments will be fixed on per square foot basis on the market value of the apartment. Earlier, the registration charges were collected based only on land value. The committee will now consider both land and construction costs before fixing registration charges.

Though officials claim the changes in registration charges were meant to simplify the complicated procedure, it is alleged that the revision of market values is only aimed at compensating the loss of about Rs 650 crore to the exchequer on account of stamp duty reduction.