PUNE: The government on Friday announced an average hike of 1.74% in the ready reckoner (RR) rate for properties across the state, except for Mumbai where it reduced by 0.6%. The rates will come into effect from Saturday.
Pune district registered the highest hike of 3.91%, followed by Raigad and Nandurbar
at 3% in the revision announced for 2020-21.
Higher ready reckoner rates push up the agreement value of a property, thereby effectively nullifying the stamp duty reduction granted earlier by the state government. The hike will impact property sales and affect both homebuyers and developers. It comes at a time when the realty sector was actually looking at a downward revision in RR rates.
The increase for Pune Municipal Corporation areas is 1.56% and 3.41% in Pimpri Chinchwad limits.
The rate for the rural areas in Pune district was a high 8.62%, while it was 2.92% in the influence areas where infrastructure projects have been announced and 5.4% in municipal council areas.
“We have parameters to assess transactions, and we have seen the maximum transactions in Pune district. Therefore, there is a rise in the rates here,” Inspector General of Registration and Stamps (IGR) Omprakash Deshmukh said on Friday.
Revenue minister Balasaheb Thorat told TOI that the rates had to be corrected, and for the first time after a revision in the rules, it was reduced in some areas.
“We decided on a realistic rate. The RR rates were reviewed after 2017, and we found that in many areas, the rates were consistently high, and hence we rationalised them,” he said. Developers had requested that the rates be reduced as they were very high in some areas, he added.
The average hike for rural areas in the state is 2.81%, for influence areas 1.89%, municipal council areas 1.29% and corporation areas 1.02%.
RR rate is the standard value of an immovable property assessed and regulated by the state. New rates come into effect from April 1. But this year, the announcement was deferred to September for the first time by the revenue department due to the pandemic.https://timesofindia.indiatimes.com/iframe_carona_counter_widget.cms#amp=1
The fall in the rate for Mumbai is also a first. It was done as per the revised order in 2018 where RR rates could be reduced.
The rates were announced after recommendations from district collectors, interactions with people’s representatives, and realtors.
Thorat said the department had been working on the rates for the last six months. “We reduced stamp duty. The RR rates in most areas have been marginally increased or reduced,” he told TOI.
The state government had reduced the stamp duty by 3% for the September-December period, and by 2% for the January-March 2021 period to boost sales.
Developers have been demanding a reduction in the RR rates. Credai national vice-president Shantilal Kataria said their members were taken aback by the increase in rates for Pune.
“It is surprising that the government announced a hike in the RR rates especially for Pune which is the most affected. They are the highest whereas we were expecting it to decrease. This system of deciding ready reckoner rates is not scientific,” he said.
A property watcher told TOI that there were suggestions to the government to bring down the rate by as much as 40% for the next two years to boost the real estate sector.
Increasing the RR rates after reducing the stamp duty in most areas of Maharashtra comes as a surprise, though it was reduced in Mumbai, said Anuj Puri, chairman of Anarock Property Consultants.
“Bringing down the RR rate considerably was expected as it would have given some room to developers to bring down the prices of properties. In most micro markets, the RR rate is almost equal to the ongoing sales price, and buyers and sellers have to pay tax if the sales are below the RR rate. This limitation has been cited by developers to bring down prices. An increase in RR rates limits the room for them to bring down prices while marginal reductions make no difference,” he added.
The real estate industry was expecting a downward revision in the RR for better aligned with on ground reality. It impacts both buyers and developers as a hike dampens sentiments, said NAREDCO vice chairperson Manju Yagnik.