Mumbai: The state government on Friday decided not to increase the Ready Reckoner rates, giving a respite to the homebuyers and developers alike.
This is the second time after 2009 that the government decided to maintain a status quo on Ready Reckoner (RR) rates. Last year, the RR rates were increased by 5.86% on an average.
The state government earlier in the month had introduced a provision that would allow reduction in Ready Reckoner rates with an amendment in the Bombay Stamp (Determination of True Market Value of Property) Rules 2018. It allowed the Chief Controlling Revenue Authority for the first time to either increase or decrease the RR rates as well as give the discretion to the government to take a call considering the present market scenario.
The RR rates are market values of properties determined by the government for the payment of stamp duty.
Revenue minister Chandrakant Patil told TOI that even as there was no increase of RR rates in 2009, this year the amendment of rules and the overall slowdown faced by the realty sector made the government to decide against increasing the rates.
“The proposal was to increase the rates by 7%. But we decided not to increase the RR rates as the rates were already high. Even with all the housing regulations such as the MahaRERA and GST, we were able to cross our revenue target. The stamp and registration department achieved the Rs26,100-crore target,” the revenue minister said.
He said with the current proposal by the authority to increase the RR rates, the government would have earned Rs1,750 crore more than this year’s target but it would adversely impact the sentiment of buyers and seller. “I believe that even as we might make a loss, the volume of transactions is bound to improve with the RR rates remaining unchanged. This, in turn, will help us achieve our target and boost the realty sector,” added Patil.
Ready Reckoner rates in Maharashtra to remain unchanged in 2018-19 The developers constantly appealing to the government to not to increase the RR rates are a relieved lot. “The Maharashtra government, for the first time in eight years, has not changed the indicative prices of properties in the ready reckoner, which is used by the government to charge stamp duty on property transactions. In 2009, the then revenue minister, Late Patangrao Kadam, took the same decision. It is a very realistic and practical decision in the interest of public at large and the real estate industry,” said Shantilal Kataria, the state president of Credai.
While for Pune city last year, the RR rates increased by an average of 3.64% in the city_the lowest increase in the last six years while for Pimpri-Chinchwad the increase was 4.46%.
Inspector-general of registration and stamps Anil Kawade told TOI that this year the target revenue achieved by the stamp and registration department was Rs 26,100 crore as against Rs 21,000 crore. The department registered 21.29 lakh documents as against 20.46 lakh documents registered last year.
Earlier, the state government had decided not to increase the RR rates in the Mumbai Metropolitan Region (MMR), according to the recommendations made by the cabinet sub-committee on Monday. The state government appointed a sub-committee under the chairmanship of revenue minister Patil and finance minister Sudhir Mungantiwar. Housing minister Prakash Mehta and health minister Dr Deepak Sawant are the members of the sub-committee, tasked with deciding whether or not the government should increase the RR rates from April 1, 2018.
Ready Reckoner rates are the prices of the residential property, land or commercial property for a given area and is published and regulated by the respective state government. These rates are regularly revised on a yearly basis depending on the perception about the government for such price revisions.