Elected representatives from Mumbai have opposed the government's move of levying stamp duty at the ready reckoner prices on the tenancy rights or the pagadi properties.
Elected representatives from Mumbai have opposed the government's move of levying stamp duty at the ready reckoner prices on the tenancy rights or the pagadi properties. MLAs from both the ruling parties, Baba Sidique from Bandra, Madhu Chavan from Byculla, met chief minister Prithviraj Chavan couple of days ago and requested him to re-consider the decision.
The tenants in the tenancy rights properties pay Rs200 per square foot as the stamp duty on the transaction of the properties. The rate is common across the city making the buyers pay uniform stamp duty irrespective of the market price of the property. To bring parity in the system, finance minister Ajit Pawar, during his budget speech last week, announced to recover stamp duty at the ready reckoner rate.
However, the moved is opposed from tenants, real estate organisations and also from the property owners as they feel it will put one more hurdle in the redevelopment of these old and dilapidated buildings. "Most of the tenancy rights properties are in bad shape and need to be redeveloped at the earliest. With the transaction being more expensive after the decision, redevelopment would become difficult. The properties get almost 30 % less the price than their ready reckoner price due to various reasons. If the stamp duty is recovered on ready reckoner, it would be even more difficult to sell these properties," said Amin Patel, Congress MLA from Omarkhadi.
Mayank Gandhi, secretary, Remaking of Mumbai Federation, said, "The pagadi system property owners pay lesser stamp duty, but the government decision should not affect the prospects of the redevelopment of these buildings." he said that his federation is going to make a representation to the chief minister on this issue.
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