Realty players may get ready reckoner breather from 2016 : Buisiness standard

Maharashtra government planning to seek suggestions of stakeholder to make system transparent

Realty players in Maharashtra may soon be able to take part in fixing the ready reckoner rates, providing suggestions or raising objections.

The government releases revised ready reckoner rates on January 1. It is an annual statement of rates on which the stamps and registration department collects duty from property purchasers.

From 2008-09 to 2015-16, the government increased ready reckoner rates 10 to 40 per cent in Mumbai and Maharashtra. The government’s stamp duty collection in the same period increased from Rs 8,384 crore to Rs 20,000 crore.

During his meeting with representatives from realty, infrastructure and financial sectors last week, Chief Minister Devendra Fadnavis hinted the government wants to discontinue the present system of fixing ready reckoner rates on an ad hoc basis and introduce transparency in the system.

Realty players had complained the hike in ready reckoner rates is usually perceived as an increase in property prices, adversely affecting transactions. Besides, property buyers and sellers were required to pay huge penalties on grounds of buying or selling at prices less than ready reckoner rates.

A revenue department official told Business Standard: “The government will involve realty players by bringing out area-wise ready reckoner well in advance of January 1. The government will give an opportunity to realty developers, architects and property consultants to provide suggestions.”

Sunil Mantri, president, National Real Estate Development Council confirmed the state government’s plans to involve of stakeholders to fix ready reckoner rates.

“Every year, ready reckoner prices are increased abruptly causing a double impact. The actual property transactions in Mumbai and rest of Maharashtra are happening at lesser prices, hampering the government’s revenue,” he said.

Mantri, who has already made a representation to the government, suggested while publishing the ready reckoner rate of any area, at least 200-300 transactions should be looked into.