What is a Market Value Certificate?

A market value certificate for farmland in Telangana is an official document issued by the government that states the estimated market value of a specific piece of agricultural land. It serves as a reliable and independent assessment of the land's worth, useful for various purposes like:

Securing loans: Banks and other financial institutions often require a market value certificate to assess the collateral value of farmland before providing loans.

Legal disputes: In case of property disputes or inheritance issues, a market value certificate can provide a benchmark of the land’s worth. Usually, the land is acquired at a price that is 3-4 times the value provided in the market value certificate.

Government purposes: For certain government transactions like land acquisition or stamp duty calculations, a market value certificate might be mandatory.

There are two main types of market value certificates for farmland in Telangana:

Agricultural Land Market Value Certificate: This certificate specifically focuses on the value of the land for agricultural purposes, considering factors like soil quality, irrigation access, and crop yields.

Non-Agricultural Land Market Value Certificate: This certificate considers the land's potential for non-agricultural uses like residential development, commercial ventures, or industrial purposes.

Since the Dharani portal's launch, booking a registration slot automatically triggers the calculation of the market value for stamp duty.

Obtaining a market value certificate:

The process for obtaining a market value certificate for farmland in Telangana can be done online or offline:

Online: Visit the Telangana Registration Department website (https://registration.telangana.gov.in/) and use the "View Market Value of Lands for Stamp Duty" tool. Enter the district, Mandal, village, or city details, and the system will provide an estimated value based on government-determined ready reckoner rates.

Offline: Apply at the office of the Tehsildar in the jurisdiction where the land is located. Visit the Sub-Registrar’s office for non-agricultural land. Submit the required documents, including the application form, and land ownership documents. The department will assess the land and issue the certificate within a specified timeframe.

Remember, the government-provided value mentioned in the certificate is an estimate and might not reflect the actual market price, which can be influenced by various factors beyond government calculations.

Fun Fact-

On January 19, 2022, a directive was issued to the Commissioner of the Stamps & Registration Department, Telangana instructing the implementation of revised market values. The new values entail a 50% increase for Agriculture, 35% for Non-Agriculture, and 25% for Apartments. These revised market values were applicable statewide starting February 1, 2022. The decision to revise values again was attributed to the escalating land values and the flourishing real estate sector in the state since its formation.

In Telangana, the true market value of farmland can be 10 to 100 times higher than the official market value listed on certificates. Land with a certificate value of just 1.5 to 3 lakhs can be worth anywhere from 36 lakhs to 1 crore, depending on location and other factors. This significant discrepancy contributes to a large number of unreported transactions as sellers seek to avoid taxes on the full sale price.