NO hike in Ready Reckoner rates, demands CREDAI Maha
There is an indication that Government is in process to increase the Ready Reckoner rates from April 2020. Baring last 2years, there was always an increase of 10-25% RR rates per year throughout the state. Owing to this, there has been an exorbitant rise of 300% in last 7 years. In the books of Ready Reckoner there is a constant change in footnotes leading to high evaluation of the rates. The Real Estate sector is going through slump period, hence the RR rates should not be changed and kept “as-it-is” urged Rajiv Parikh, President- CREDAI Maharashtra, the highest body of private realtors of Maharashtra state.
The state earns its second largest revenue from the Stamp Duty. In village and fringe areas and Metro Cities the increase of 1% stamp duty has helped the govt. to collect impressive revenue for the present year. The Real Estate sector is experiencing distress since last 3-4 years. To increase the sale, realtors have no other option but to offer many discounts. With the likelihood of increase of RR rates, those who are probable buyers may curtail their plans. On the one side, when Govt. is offering various sops for affordable housing, increasing the RR rates for land and flats may fracture the construction activities.
“We urge Govt. to work out clear, transparent, scientific, micro-process mechanism for working out true Ready Reckoner rates of transactions. Now with new provision incorporated by way of amendment in Stamp act, Government can even reduce the Ready Reckoner rates. They should search such transactions were Ready Reckoner rates are still unnecessarily more than real transactions & reduce the same by applying new provisions of act. We also urge govt. to change the Ready Reckoner rates once in a three year only to further increase stability and boost confidence amongst the property buyers. Some of the other demands are that the Govt. should do away with average rate system; it should be the lowest rate of that particular area, to consider ASR once in 3 years only, Adjudication system should be faster, transparent and with proper powers to the authorities, since the GST is in place, LBC should be abolished, added Parikh.