The Maharashtra government has extended a stay up to September on an average of 5% rise in ready reckoner rates (RR) on land or open plots in Mumbai Metropolitan Region (MMR) that comprises Mumbai city, Mumbai suburban, Thane, Palghar and Raigadh.
The government had revised the RR rates from April 1 for the entire state both on the land and on structures, but later granted stay from May 19 for a month on land in MMR after the realty sector players argued that the rise will badly hit the sector during the economic downturn. The realty players also said that increase in RR will particularly affect the affordable housing projects.
RR is an annual statement of rates on which the stamps and registration department collects the stamp duty from property buyers.
A revenue department official told DNA,“The stay on RR increase on land in MMR has been extended up to September. The government notification in this regard has been issued on June 19.” He clarified that the stay is only on land or open plot and not on structures.
The state government’s decision comes at a time when the Centre will launch the Goods & Services Tax from July 1 across the country. As far as realty sector is concerned, 12% GST will be recovered from the property buyers.
The government’s move has evoked a mixed reaction. Anand Gupta, senior member Builders Association of India said,
“As industry representative increase in RR rates from April 1 was most unrealistic and uncalled for considering the very bad market conditions and sentiments to buy the flats. We are now happy that the stay which was granted by the government has been extended further for another three months. It could have been more appropriate on the part of the government to completely withdraw the increase for the whole year and set the record in right direction.”
However, Raha Realtors chairman and managing director Rajesh Mehta said the government should have stayed increase in RR for both land and structures and it should not have been applicable only to MMR but for the entire state. “The stay on hike in RR for structures would have benefited property buyers in getting relief especially in the payment of stamp duty and service tax. It would have also helped the affordable housing projects,” he noted.
Niranjan Hiranandani, managing director, Hiranandani Group welcomed the government decision. “However it should have been done for the whole year and also for apartments and not merely for land as this would have helped common man for affordable housing.”
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