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Property Tax Collection in Mumbai Dropped by 34%

Dec 19,2019 / By / No Comment
Property Tax in Mumbai

Property Tax in Mumbai

Almost 3-quarters down the fiscal, property tax collection in Mumbai displays a 34% shortfall compared to last year as the Brihanmumbai Municipal Corporation (BMC) has issued no residential bills in the middle of confusion over a waiver policy for homes under 500 sq.ft.

Property tax collection in Mumbai was Rs 1,637 crore till 13th December 2019, while last year BMC had collected Rs 2,495 crore till the same date.

Property tax in Mumbai is the largest revenue source for BMC. This year, tax collection has been executed only from commercial firms since the civic body has issued no residential property tax bills at all this year as it has not updated its software and other systems to reject living units under 500 sq.ft while making bills.

The software update has been kept waiting as there is a lack of clarity on whether residential units under 500 sq.ft are to be charged nothing at all or given only a base amount waiver while being asked to pay the other, smaller components of the bill like the various cess on it.

In a recent meeting with the new Chief Minister of Maharashtra Uddhav Thackeray, the civic administration flagged the issue of fund crisis at a time when the BMC plans to take up many big ticket-size projects such as Goregaon-Mulund Link Road and 29.2 km long Coastal Road project.

As per critics, BMC may not touch even half of property tax target

The Shiv Sena, the party which rules the BMC deliberative wing, and is headed by CM Uddhav Thackeray had in its 2017 civic poll manifesto promised property tax waiver for residential units under 500 sq.ft in area.

The BMC also drastically increased its collection target to Rs 8,300 crore this year from the Rs 5,000 crore it used to set itself before now. Critics are skeptical about the Municipal Administration reaching even half of its target.

BMC officials said that the corporation estimates around 4 lakh properties every year. Though the BMC would issue property tax bills amounting to over Rs 5,500 crore every year, the collection target used to be set at only about Rs 5,400 crore.

As outstanding property tax before the beginning of the fiscal was over Rs 10,000 crore, the collection target was improved this time.

A BMC official said, “This time our target for collection is estimated at Rs 8,300 crore keeping in mind the fact that Rs 10,000-crore plus is the outstanding property tax demand of every year that is carried forward on average and we should begin recovering it”

The pending software upgrade and delay in sending out bills were obstructing a significant revenue source, said Asif Zakeria, a Bandra Corporator.

It is expected that the collection will rise once the clarity on the waiver is achieved and bills are issued, said BMC official. They further said that many companies pay property tax in the last month. Therefore, the tax collection in March month always the highest.

The poor collection was due to offering rebates for garbage segregation by BMC, allocating large sums to the cash-strapped BEST Undertaking and commencing infra projects. “I am going to demand a financial white paper,” said Samajwadi Party Leader in the BMC Rais Shaikh.

How to calculate property tax in Mumbai?

The property tax is a %  of the capital value of the property.

Property Tax = Tax rate * Capital Value

Here Capital Value = Rate of base value * Total carpet area/area of land in case of vacant land * building type * age factor * usage factor * floor factor

Property tax payment due date and penalty

Due Date: 30th June

Penalty: It is charged at 2% per month in case of a delay in payment beyond the due date on the outstanding amount.

How to pay property tax in Mumbai?

Property tax can be paid both online and offline.

Online payment

BMC/MCGM

  1. Visit BMC online portal i.e. https://portal.mcgm.gov.in/irj/portal/anonymous
  2. Under the “Online Services” tab click on “Pay Property Tax”
  3. Enter your property account number and choose whether you need to view “outstanding bills” or view “receipts” or “make payment” and click accordingly

Navi Mumbai/NMMC

  1. Visit NMMC online portal i.e. https://www.nmmc.gov.in/navimumbai/
  2. Under “Online Service” click on “Property” and enter you “Property Code” and click “Search”

Offline Payment

If you want to pay manually, it can be paid at the nearest assistant revenue office or BMC helps centers or citizen facilitation centers at all ward offices.

Who are applicable to get concession/exemption on payment of property tax?

  • Flats/houses measuring less than 500 sq.ft are exempt from payment of property tax.
  • A concession of 60% for houses/flats measuring between 500 to 700 sq.ft.
  • Property particularly used for public worship/charitable purposes.
  • Properties belong to the Diplomatic or Consular Mission of a foreign state as specified by the government.

 

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CIDCO Lottery 2019: Registration Deadline Extended Till 5th November

Oct 17,2019 / By / No Comment
CIDCO Lottery 2019

 

The City and Industrial Development Corporation (CIDCO) has extended the last date of application for its housing schemes, the Swapnapurthi Housing Scheme and the Mass Housing Scheme to 5th November 2019. The state-run body is planning to allocate over 9,500 homes across Navi Mumbai under the schemes. These units are largely meant for buyers from the low-income group (LIG) and economically weaker sections (EWS) categories at a starting cost of Rs 18 lakh.

CIDCO Lottery 2019 latest information

Detailed Information On CIDCO Housing Schemes 2019

Under the Swapnapurthi Housing Scheme 2019, about 814 units will be given to buyers from LIG and EWS categories in Sector 37, Kharghar. Approximately 619 homes are in the LIG category while 195 are in the EWS category. The size of the home proposed for the EWS category is 28.63 sq.mt. and the base price is Rs 24.9 lakh. Units proposed for the LIG category are nearby 34.36 sq.mt, for which the base price is Rs 39.1 lakh. The registration process has started on 30th August 2019.

Booking Amount

The applicants have to deposit Rs 5,000 as security money for units under the EWS category and Rs 25,000 under the LIG category.

Important dates

  • November 4, 2019: Registration ends.
  • November 4, 2019: NEFT/RTGS Challan generation ends
  • November 5, 2019: Online registration ends
  • November 6, 2019: Online payment and NEFT/RTGS last date
  • November 19, 2019: Publication of final list of accepted applications
  • November 26, 2019: Lottery Draw at 10.00 am

CIDCO Mass Housing Scheme 2019

The CIDCO will be allocating approximately 9,249 homes under the Mass Housing Scheme. The applicants have to deposit Rs 5,000 as security money for units under the EWS category and Rs 25,000 under the LIG category. An extra charge of Rs 250 has to be paid as a registration amount. The housing scheme offers units in Taloja, Ghansoli, Dronagiri, and Kalamboli. The flats in the EWS category are starting from Rs 18 lakh while the LIG category units are starting from Rs 25 lakh onwards. The registration for which has already commenced from 11th September 2019.

Important dates

  • 4th November 2019: Last date of registration
  • 5th November 2019: Last date of online registration
  • 6th November 2019: Last date of NEFT/RTGS payment
  • 15th November 2019: Publication of draft list of accepted applications
  • 19th November 2019: Publication of final list of accepted applications
  • 26th November 2019: Lottery Draw at 10.00 am

Eligibility Criteria

An applicant whose average monthly income of Rs 25,000 can apply under the EWS category while those with an average monthly income between Rs 25,001 and Rs 50,000 could apply under the LIG category.

How to check the list of accepted applications?

Here is a step-by-step guide to check the list of accepted applications:

  1. Visit lottery.cidcoindia.com/app
  2. Click ‘Accepted Applications’. The page will be moved to a new page where you can choose the lottery scheme.
  3. Select the area which you have chosen in your online application form. You can see your name on the list if your application has been allowed by CIDCO.

How to verify the results for CIDCO 2019 lottery?

The results can be seen on www.Cidco.maharashtra.gov.in and lottery.Cidcoindia.com after 6 PM.
Here is a step-by-step guide to check the results for CIDCO 2019 lottery

  1. Log on to lottery.Cidcoindia.com
  2. Click on the ‘View Lottery Result’ link
  3. Fill up the required application sections to check the CIDCO lottery result 2018

Important contact numbers

Applicants can communicate on 1800222756 for more information regarding the lottery details.

90,000 Homes Coming Soon

Earlier, the urban body, City and Industrial Development Corporation (CIDCO) declared that it is planning to offer 90,000 affordable homes in Navi Mumbai areas such as Kalamboli, Taloja, Juinagar, Bamandongri, Panvel, and Kharghar in its upcoming housing scheme. The scheme is expected to come soon. Lottery winners will be fit to pay as construction progresses. According to CIDCO officials, out of these 90,000 homes, 53,000 units will be under the EWS category while 37,000 units will be in the LIG category.

It was in October 2018 when the CIDCO had put over 14,800 homes on sale for which 2 lakh applications were obtained. As per the media reports, over 51,000 people have applied in the 2019 housing scheme, in the open category under Prime Minister Awas Yojana (PMAY). The list of winners is available on www.lottery.cidcoindia.com. As many as 58,700 applications were received by the CIDCO.

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Land Title Insurance Compulsory For MahaRERA Registered Builders

Sep 23,2019 / By / No Comment
Land Title Insurance

Why Land Title Insurance Compulsory for MahaRERA Registered Builders?

The state housing department is set to make Land Title Insurance compulsory for MahaRERA registered builders, for which insurers are already in conversations with the regulatory authority to make a decision on the premium.

Land title insurance is a kind of reimbursement protection, which safeguards builders and customers against financial loss from mistakes in title to real property, among others. It had earlier unsuccessful to clear out due to high pricing and lack of transparency, as well as differences in the government records.

The Real Estate (Regulation and Development) Act 2016 (RERA) directives the purchase of title insurance for new and ongoing realty projects registered with the MahaRERA (Maharashtra Real Estate Regulatory Authority).

As per sources, insurance companies have already enforced the Insurance Regulatory and Development Authority of India (IRDA) for launching title insurance products. On the other hand, developers are demanding the state government should announce a separate notification in this matter.

Rajiv Parikh, the president of the state Confederation of Real Estate Development Association of India (Credai), told that “While title insurance is a must for assured titles, it is up to the government to make sure that electronically generated titles are made available so that insurance can be needed for these assured titles. Having said that, the government needs to settle differences in title records to bring more insurers to hit the sector,”.

He further added that even though the title insurance cover may start with new projects, the premium should not be too high as the developers would be passing it on to the buyers.

As per the sources, the premium may differ from 0.5 to 3% of the sum insured for a 7 years policy which can be extended further. Two transactions for the title insurance products have already succeeded in Mumbai and the state governments are in the process of establishing Land Title Bill and may acknowledge briefing the mandatory features of the title insurance too.

Assured insurance for the title will benefit consumers to attempt the insurance in case of any differences said State settlement commissioner S Chockalingam, who has been instrumental in recommending for the title insurance.

He further added that once, the state government makes it compulsory, the state real estate regulatory body can execute it among promoters of new projects.

At the same time, the government would have to control the premiums as the consumers are not too interested in title insurance over the fear of increasing the cost of the property.

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Japan’s Sumitomo bids record Rs.2238 crore for 3-acre BKC plot

Jul 18,2019 / By / No Comment
BKC

Japan’s Sumitomo bids record Rs.2238 crore for 3-acre BKC plot

In one of the biggest investments by an international firm in the Maharashtra realty sector, Japanese major Sumitomo Corporation has purchased a 3-acre plot in the prime locality of Bandra-Kurla Complex (BKC), Mumbai for Rs.2238 crore.

It ends up to around Rs.745 crore per acre and maybe the largest per-acre land deal in BKC, India. The last time a notable bid was placed was in 2010 when the Mumbai’s realty major Lodha Group offered Rs.653 crore per acre for a 6.2-acre (the total bid was for Rs.4050 crore for the (MMRDA plot) land parcel in Wadala, Mumbai. The reserve price for the plot was decided at Rs.3.44 lakh per sq.m.

The plot, “C-65”, relates to the Mumbai Metropolitan Region Development Authority and an offer letter for it was assigned to Goisu Realty Pvt. Ltd. for an 80 years contract. As per the MMRDA official, Sumitomo was the sole bidder for this plot. MMRDA did not find any bidder among local developers even after it had been put on the block for many months due to the liquidity crisis in the local property market.

Founded in 1919, the Tokyo-headquartered Sumitomo Corporation is span across Japan, Asia, Europe, America, Africa, East Asia, and other countries globally, dealing in infrastructure,  transportation and construction systems, realty, chemicals, minerals, energy, metal products, and media.

Maharashtra Chief Minister Devendra Fadnavis and other senior officials from the state government, MMRDA and the representatives from the buyer’s front were already on the event.

As per the property expert, Sumitomo has given an insane price as the company wants to present in a prime commercial market like Bandra Kurla Complex (BKC), Mumbai. The diversified business magnate plans to build a commercial office complex, which might house its Indian units as well.

The MMRDA official said that Sumitomo will be allowed to use a floor space index (FSI) 4 on the plot, providing it with a built-up area of close to 10 lakh sq.ft.

Maharashtra Chief Minister Devendra Fadnavis called the deal as a “win-win” for both MMRDA and Sumitomo, which has opened a new door for global investors. And many more global corporates are expected to show interest in investing in the BKC in central Mumbai with easy connectivity to the eastern and western suburbs and south Mumbai, Maharashtra.

Image Sources: Google

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