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Maharashtra: Ready Reckoner Rates remain unchanged three years in a row
The Times of India  |  April 3, 2019

Clara Lewis Mumbai

For the third year in a row the Ready Reckoner Rates across Maharashtra will remain unchanged. The 2017-18 rates will continue to apply this financial year as well, said an order issued by Anil Kawade, Inspector General of Registration, Maharashtra.


The order was issued late Monday night.


Valuators said it is highly unusual that real estate rates would have remained unchanged for three years. "Even if the government does not increase the rate because there is a downturn in the real estate market, the Ready Reckoner Rates does not reflect this reality," said Sunit Gupta, an expert in Valuation. The government is contradicting itself, he said.


Niranjan Hiranandani, president, National Real Estate Development Council (NAREDCO), said the industry welcomes the government's decision not to increase the rates. "The bureaucracy wanted to increase the rates to increase the state collections. It is the right decision to not increase the rate," he said.


Hiranandani said the downside was that developers in areas where the rates have actually fallen cannot sell their flats at reduced rates since the Income Tax Act does not allow any sale below 5% of the Ready Reckoner Rate for that area. "Supposing the rate in an area is Rs 5,000 as per the Ready Reckoner Rate but the sale has taken place at Rs 4,500, both buyer and seller still have to pay additional tax on the Rs 500," he said.


This anamoly will need to be addressed through the next budget at least for affordable housing which will otherwise be difficult to implement, he said.


Real Estate observers said the build up of inventory, over 2.5 lakh flats unsold in the Mumbai Metropolitan Region, is an indication that the Ready Reckoner Rate too may have a role to play in sales being stagnant. "Only the government has the data and it must put this data in public domain," said an observer.