Ready reckoner painful for real estate buyers
Ready reckoner (RR) rates, which are used to calculate market value of properties for payment of stamp duty and registration charges, must be reviewed by the state government to most recent.
Undoubtedly, stamp duty collection is one of the biggest money spinners for the Maharashtra government. But for the people who want to buy or sell flats and the real estate industry, the annual hike in RR rates can be extremely painful.
The government hiked the rates by 20% this year, leading to protests from the public. Due to which, India’s leading commercial business district Nariman Point has been badly hit.
RR rates for Nariman Point have been fixed at Rs 43,000 a sq ft when the prevailing market rate ranges between Rs 26,000 and Rs 30,000 a sq ft. This irrational increase could kill the office transaction market in the business district and spell trouble for buyers and sellers as they can be accused of carrying out black money transactions and intentionally undervaluing property.
Ancient Mahalaxmi temple complex has also been affected by this. The RR rates in the estate are three to four times the actual saleable value of property. The last month’s revised rate is 10% more than that fixed in 2013.
The government should fix more reasonable rates in the future.
Source: The Times of India.
estate industry, Mahalaxmi temple complex, Maharashtra, Nariman point, Public, Ready reckoner (RR) rates, State government
