Maharashtra state is preparing to increase the Ready Reckoner rates from 1st April onwards. Since last decade every year RR rates have been increased by 10% to 25% resulting in more than 300% increase in some areas. Hence, in public interest CREDAI members would initiate series of meetings with MLA’ and MP’s and explain the complete situation. Also, a meeting with Chief Minister and IGR would be done requesting to look into their grievances, informed Shantilal Kataria, President CREDAI Maharashtra in a press note.
Increase in Ready Reckoner rates is proposed at the time when the real estate sector is facing slow-down from last 5 years. Last year the state Govt. had increased the ready reckoner rates inspite of destabilized economy owing to demonetization. In 2009, the then state govt had reconsidered the roll back of the ready reckoner hike due to slow down in the realty sector. Similar stand needs to be taken now as well, kataria added.
Stamp duty is the second largest revenue generating segment. The ongoing year has seen the increase of 1% in stamp duty in rural and effective areas, which has generated enough revenue for the govt. But due to this random increase in stamp duty, the home buyers are finding it difficult to buy the flats and it may remain so in future as well.
At present, the state government is floating various schemes for affordable housing. Even if the state govt aims at constructing as many houses and keeping their rates under check, the rates for lands for making such affordable housing in rural areas ( besides gavthan area) has been increased by 600% to 1000%. Hence, such scheme of providing affordable housing to the people is taking a big hit even before its implementation.
In 2017, along with stamp duty the home buyers are made to paid GST as well. Earlier, the home buyers were paying service tax of 5.5% but now they are paying 12% GST.
CREDAI members would discuss following pointers which needs immediate attention from decision makers:
1. Ready Reckoner rates hike should be done in once in a 3 years and not annually basis as it is now.
2. In Ready Reckoner, category of Residential rates should scrapped
3. Micro planning should be done with the use of technology so that each asset is independently evaluated. The rates should be derived by scientific method where the increase is based on ‘at actual’ rather than arbitrary.
4. Legal provisions should be made to reduce the rates in the area where the ready reckoner rates have gone up …it means that less rates should be applicable in the area where transactions have happened at the rates less than Ready Reckoner rates.
5. Ready Reckoner rates should not be based on the average value but on the lowest rate of that particular area
6. The property should not be revaluated based on the foot notes, as there is a double evaluation due to foot notes.
7. Since GST has come into force, 1% LBC should have been scrapped which has not happened till now.
8. The cost of construction has been shown 30-40% more in the rate value table. In many cities the cost of construction is equal to the property cost itself. Hence, it should be commensurate with the actual cost of construction.
9. The process of removing discrepancies in rate value table should be transparent, progressive and objective.
10. In 2018-19 there should be NO increment in Ready Reckoner rates also the rates should be cut down according to actual cost, wherever it can be done.