Maharashtra government is mulling 10 to 25% Increase in ready-reckoner (RR) prices from Jan 1, 2014Tags: ready-reckoner, real estate sector, residential & commercial properties in Mumbai
The Maharashtra government is considering a 10 to 25 % enhancement in the ready-reckoner (RR) rates for residential & commercial properties in Mumbai & the rest of Maharashtra from 1 Jan, 2014. The revenue division has convened a meeting on Monday to find out various options in this respect.
Ready-Reckoner is an annual declaration of rates on which the stamps & registration division collects seal responsibility from property buyers. The govt plans to mobilise Rs 20,000 crore during 2013-14 through postage stamps & registration. From 1 Jan, 2013, the state govt had hiked Ready-Reckoner (RR) rates in the city by 5-30 %.
During 2008-09, the income from stamp obligation was Rs 8,384 crore, raised to Rs 10,901 crore in 2009-2010 (30 % increase), Rs 13,411 crore in 2010-2011 (23 % increase) & Rs 14,800 crore in 2011-2012 (10 %). The accumulation increased to Rs 15,000 crore by end 2012-2013.
The real estate sector & the ruling & opposition parties have powerfully antagonistic any increase of Ready-Reckoner (RR) prices due to the present decelerate & deteriorating financial condition of the sector. Property purchasers would have to invest more as based on the corrected Ready-Recknor prices, they would also have to pay gamier value added tax, service tax & 50 % enhanced stamp obligation.
Political parties awe an increase of Ready-Reckoner would make it hard for them to collect votes in the ensuing Lok Sabha & Assembly elections slated for 2014. The Congress & Nationalist Congress Party have been ruling the state since 1999, while the Shiv Sena-Bharatiya Janata Party is in power in the Mumbai civic body since the last 18 years.
Sunil Mantri, president, National Real Estate Development Council, said “In the last few years, the govt has made RR the greatest cash cow, with a rise in its rates every year without any justification. Any increase in RR prices is completely unjustified, specifically when the real estate sector is passing through tough time. In fact, my idea is that the govt should reduce the RR prices & also cut the stamp duty to 2-3 % from the current level of 5 %. This wills finally encouragement property transactions.”
Yomesh Rao, Director, YMS Consultants, quandary a rise in RR would lead to a increase of the premium cost price a real estate player has to pay to the municipal corporation of Greater Mumbai. Currently, it is Rs 4,000 per sq ft. Further, the increase of premium cost would reason the developer to enhancement construction cost & the end result will be a rise of property prices for the client.
Amin Patel, The Congress legislator from south Mumbai said, “I have already written a letter to Chief Minister Prithviraj Chavan with a plea that the govt should not hike RR rates in the present prevailing economic circumstance. Besides, I have held speaks with Income Reverend Balasaheb Thorat. The chief Minister has consentaneous to convene a meeting in this respect before the new prices become irrelevant from Jan 1 next year.” However, he said that he, along with other party members would powerfully deprecate any enhancement of RR as it ultimately would have a negative impact on residence customers in Mumbai.
Patel’s views were shared by another The Congress legislator from North West Mumbai, Baba Siddiqui, who expect that the govt would not raise RR rates further ensuing elections?
Vinod Tawade, leader of the opposition in the Maharashtra Legislative Council built up a powerful pitch for a condition quo in the RR prices from Jan 1 next year. He opposed any raise, saying it would further affect the real estate sector adversely.