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Maharashtra announces increase in the Ready Reckoner rates across the state New rates come into effect from September 12

Maharashtra announces increase in the Ready Reckoner rates across the state New rates come into effect from September 12

Industry Excerpts:

Dr. Niranjan Hiranandani, President (National) NAREDCO and Assocham:
“It is surprising, that in a scenario where the suggestion, ‘reduce price of residential real estate’ has been covered by media –be it Deepak Parekh, Nitin Gadkari or  Piyush Goel – the state government has instead opted to enhance the Ready Reckoner value. Income tax provisions mean a developer cannot sell at a price point lower than the Ready Reckoner rate, as it translates into taxation burden for both buyer and seller. In this situation, the expectation was that the state government would reduce the value, instead, it has chosen to increase the same. New projects will be impacted too, as the Ready Reckoner value will govern all levies, duties and taxes payable by a developer. One hopes the authorities will consider this and take necessary steps.”

Mr. Rajan Bandelkar, President, NAREDCO West & Convener,
“The Government had recently taken a bold decision of stamp duty reduction. Earlier the ready reckoner rates were very high, now the Government has made a marginal upward revision in locations where the rates were low and reduced the rates where they were high which has made it more balanced. This is a welcome move in favour of the customers.”

Mr. Ram Naik, Executive Director, The Guardians Real Estate Advisory
“The move will lead to confused signalling. While on one hand the government is indicating to homebuyers that they want them to buy homes by slashing the stamp duty, on the other it is marginally increasing the ready reckoner rates. This increase, to a certain extent, is going to nullify the gains of the reduced stamp duty for the recently motivated customer. This increase is also going to force developers to pass on the additional burden of increased premium costs, that are linked to the ready reckoner prices, onto the customers. All in all, we could have waited for a better day for such announcements.”

Mr. Anuj Khetan, Director, Vijay Khetan Group
“It’s being perceived that the ready reckoner rates have been increased in the State. But in reality, in the government’s view they have rationalised the rates across the city. The rates have been slashed in few areas whereas it’s been hiked in some, therefore it’s not a direct surge in the rates. Nonetheless, it’s not the right time to do this exercise when the industry’s balance sheet is under severe stress and the country is reeling under this horrific pandemic.”

Mr. Bhushan Nemlekar, Director, Sumit Woods Limited
“The Government has given mixed signals. They have reduced the stamp duty which is a welcome move. And now with the marginal increase in ready reckoner rates, the cost will increase as the premiums and other charges which are linked to the ready reckoner rates will also increase resulting in an increase in the cost of flat. We are hoping that BMC will reduce the premium percentage so as to give relief to the real estate industry.”

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