Tagged: Ready Recknor
NTH :: Maharashtra raises ready reckoner rates 7% from today
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.
Source: http://goo.gl/jExRmT
NTH :: Maharashtra govt not to hike ready reckoner rates in ’16
The state government had earlier planned to increase the ready reckoner rates by 15 to 20 per cent from January 1, 2016.
Written by Shubhangi Khapre | Nagpur | Updated: December 8, 2015 3:28 am | Indian Express
The Maharashtra government has decided not to hike the ready reckoner (RR) rates next year.
The decision comes in the wake of the state government’s plan to stabilise the steep increase in housing prices in all metros, and two- and three-tier cities. An unchanged RR aims to boost the real estate sector, which is reeling under a slowdown.
“In the past, former chief minister Vilasrao Deshmukh too had taken a similar decision ahead of evolving housing policies in 2006 and 2008,” said an official in the Ministry of Urban Development and Housing.
The state government had earlier planned to increase the ready reckoner rates by 15 to 20 per cent from January 1, 2016. However, after considering all aspects related to housing and related industry, it decided not to go ahead with any increase next year.
The decision, said the official, would also help the state realise Prime Minister Narendra Modi’s pet project ‘Housing for All by 2022’.
According to the official, during a preliminary spadework for the housing-for-all project, it became apparent to the government that a steep hike in RR rates would be detrimental in sustaining housing projects.
“The preliminary report indicated that sale and purchase in the housing sector across the state have slumped by almost 30 per cent,” he said.
A senior Cabinet minister said, “Housing-for-all remains high on our agenda. While the state government, along with the Centre, has set aside its own phase-wise projects to reach out to the weaker and backward sections, the role of private players in providing the stocks affordable to people cannot be overlooked. Moreover, the housing industry cannot be seen in isolation. Along with the housing sector, other related sectors too would benefit.”
Earlier, several associations related to the housing sector and developers’ associations had requested the government not to slap a steep RR rate. “A hike in RR triggers a chain reaction as it leads to an increase in stamp duty costs, premium paid on Floor Space Index (FSI) and property tax,” said a developer, adding that it further increased the cost of houses.
Buyers pay stamp duty equivalent to 5 per cent of the RR value or the actual property value mentioned in the agreement, whichever is higher.
The reason for not hiking RR also aims to curb the transfer of black money in the real estate sector. Developers often encourage a sizeable component of black money or cash transfer to provide relief on actual property prices.
It is argued that a rise in RR could also translate into rise in charges for development agreement on a new plot purchase, premium paid to municipal corporations for fungible FSI, staircase premium, open space deficiency and car parking as they are equated and defined on the basis of RR rates.
“It is a fact that any move to hike RR rates will lead to developers passing the increased cost to buyers. At a time when the Centre and state have declared affordable housing for all, it will have to initiate policy measures to make the housing sector more robust and keep the prices stable,” a senior official said.
Source : http://goo.gl/15XBJP