Taking market into consideration, govt amends rules to incorporate the enabling provision
In a first of its kind move, the state government has made an enabling provision to reduce ready reckoner (RR) rates after taking into account prevailing market conditions. Homebuyers in Maharashtra can now expect a fall in property prices as the move will enable realty players to offer more discounts.
The government has amended the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995 whereby the Inspector General of Registration will now have the powers to cut RR rates instead of increasing or maintaining status quo. The government issued a gazette notification in this regard on March 12 and is expected to revise RR rates from April 1 for the 2018-19 fiscal year.
Ready Reckoner is an annual statement of rates on which the stamps and registration department collects stamp duty from buyers. An official from the state revenue department told DNA, "As the government increases the RR rates, the market is forced to correct itself to at least match the increased rates thereby increasing the median rate of the market, in the absence of any other economic or civic factor to drive prices upwards."
Niranjan Hiranandani, co-founder and Managing Director, Hiranandani Group said, "The government has recognised the reality of recession in the market and introduced an enabling provision to decrease RR rates."
CREDAI-MCHI CEO SS Hussain said the reduction in RR will have a cumulative effect on several charges which are levied on annual rates. "A balanced approach will show positive outcomes and the government will gain as recovery will be more."
Nahar Group Vice Chairperson Manju Yagnik said the realty sector is on its way to an aggressive revival and the government's move is only going to push the pace further. "Even though RR rates differ from area to area, the overall impact of the unsold inventory will give a big boost to affordability. This shift in policy will definitely be a boon for lower income groups sensitive to price," she added.
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