Ready reckoner (RR) rates are used to calculate the value of immovable property, like commercial or residential buildings or land, and charge stamp duty and registration fees on them.
To make the system of computing ready reckoner rates more scientific and rational, the state government is planning pilot projects in three cities, including Mumbai, to link property transactions data with GIS maps.
Ready reckoner (RR) rates are used to calculate the value of immovable property, like commercial or residential buildings or land, and charge stamp duty and registration fees on them.
"We are planning pilot studies in Mumbai, Pune and Thane, linking our sale data with GIS maps," Dr Ramaswami N, inspector general of Registration and Controller of Stamps, told dna. He added that a similar study had been undertaken by them at Aundh in Pune.
"We are trying to make the RR rates more accurate… we are studying how property registrations can be linked to GIS maps to arrive at a reasonable accurate figure," said Ramaswami, adding that areas in each of three cities would be shortlisted. "If this succeeds, we will expand it across the state."
In the present system, RR rates for "value zones" are compiled based on the average of market rates, local inquiries, documents registered with the department, information from media reports, real estate exhibitions and market intelligence. The new system, which involves mapping property transactions out on GIS maps, will aim at transcending these limitations and elements of subjectivity.
The state has been divided into four regions for compiling RR rates — rural, influential (peri-urban areas peripheral to urban areas), municipal council and municipal corporation areas.
"We are trying to go in for an automatic analysis of property transactions in a particular city survey number so that we can arrive at a scientific average… using satellite imagery will also help us get details of the development in various areas and how they affect real estate prices. For instance, we can know if access to a bus stand or a rail head can push up real estate prices or if proximity to a garbage dumping ground can pull down prices of flats," explained another officer from the department.
"However, a challenge lies in the fact that our land records have not been updated and digitised. Some of them date back to the colonial area. Hence, it is tough to locate individual property transactions on these maps. A particular survey number is a huge area and it may be difficult to map out these transactions on it… It is also tough to demarcate boundaries on non-built-up lands in urban areas. We will have to contend with these challenges," the officer added, noting that the department also faced manpower shortage and vacancies.
Former president of the Maharashtra Chamber of Housing Industry Paras Gundecha welcomed the move, noting that the prices of different buildings in the same area varied based on their age and the amenities offered. "The RR rates are increased annually by 20-30%, regardless of whether real estate prices have risen or not," he complained.
The department of registrations and stamps collected Rs20,183 crore in revenue in 2014-15 and has around Rs21,000 crore target for the present financial year.
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