Cites slump in realty sector & drought for moderate rise
Sanjay Jog | Mumbai | April 1, 2016 Last Updated at 00:23 IST | Business Standard
Mumbaikars will have to shell out more for the purchase of residential and commercial properties as the Maharashtra government has made moderate increase of 7% in the ready reckoner (RR) rates from April 1. In the rural areas RR rates have been hiked by 8% while 7% in influential areas, 7% in municipal council and nagar panchayat limits, 5% in municipal corporations areas.
At the state level the RR increase comes to an average 7% for 2016-17. The government hopes to mop up about Rs 15,000 crore through the RR rate revision. RR is an annual statement of rates on which the stamps and registration department collects the stamp duty from property buyers.
The state revenue minister Eknath Khadse made announcement in this regard in the state assembly saying that the government took the conscious decision not to increase RR rates steeply considering the slump in the economy and the sluggish mood especially in the realty sector.
This apart, the drought and scarcity conditions in rest of Maharashtra was also another reason for a moderate 7% rise in RR rates. Realty players and members from ruling and opposition parties had also appealed to the government not to have an hefty increase in RR rates.
The government had amended the Bombay Stamp Act and rules last year to introduce RR revision from April 1 instead of January 1 every year. The government had increased RR rates by an average 15% in 2015, 22% in 2014, 27% in 2013, 18% in 2012, 17% in 2011 and 14% in 2010.
Builders Association of India spokesman Anand Gupta reacted sharply against the government’s decision saying that it was unwarranted at this time when actual rates of properties were falling. ”The government should have thought some other measures to increase their revenue instead of resorting to revision in RR rates,” he said.