►Ready reckoner rates hiked in Maharashtra; realty sector unhappy
In a damper for the realty sector – which is
already reeling under an acute slowdown – the Maharashtra government has hiked
the ready reckoner rates by an average of 1.74% across the state from Saturday.
The move will result in costlier properties, as the stamp duty is set to
increase, apart from increasing the overall project cost for the builders.
The move has evoked criticism from the real
estate sector on Friday, with most stakeholders terming the move as uncalled
for, given the current unprecedented crisis caused owing to the Covid-19 and
the ensuing lockdown.
The decision comes after the state recently
reduced the stamp duty for a temporary basis to boost property sales.
Omprakash Deshmukh, inspector general of stamps
and registration, termed the hike “negligible”.
“The average hike is just 1.74% across the state
and this will hardly affect the real estate sector. We have hiked ready
reckoner rates after more than two years and the rates are from the time of
2017,” said Deshmukh.
He justified the hike and said the increase in
the rate in Mumbai was only 0.5 %, while for Navi Mumbai, Thane and Raigad the
rates are revised to 0.99%, 0.44% and 3%, respectively.
Deshmukh said the hike was implemented after
studying various aspects such as the stamp duty registrations, sales data,
local surveys, visits to property exhibitions and major transactions conducted
over the year.
Builders have condemned the hike as a “negative
step”.
“How can we reduce prices when the government is
hiking the rates instead of decreasing them,” said Sandeep Runwal, director of
Runwal Group.
“All the factors such as premiums, stamp duty as
well as income tax rates are linked to ready reckoner rates and this increase
will have a cascading effect all across,” he added.
Anuj Puri, the chairman of ANAROCK Property
Consultants, said the sector was looking for cuts in the ready reckoner rates.
“Hiking the ready reckoner rates limits the room
for builders to cut down the real estate prices,” said Puri.
The ready reckoner rate is a guide published
annually by the state government, which determines the rate of properties in a
particular area, on which stamp duty and registration charges are levied. In
addition, all calculations related to real estate whether it is premiums, tax
collection or even Income tax matters related to the construction sector is
dependent on ready reckoner rates.
Courtesy: Hindustan Times