FPJ Exclusive: Mystifying tweaking of ready reckoner rates by MVA government
FPJ Exclusive: Mystifying tweaking of ready reckoner rates by MVA government
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Mumbai: The Department of Registration and Stamps has substantially reduced or increased the ready reckoner (RR) rates in certain zones in Mumbai a few months after it came into effect from September 12. This has been done following clearance by the Inspector General of Registration (IGR). The department decision has been attacked by the opposition while some realty players admitted it would largely benefit their competitors.

RR rates are the fare rates of immovable property, on the basis of which market value is calculated.

As per the notification issued in the first week of December in Kanjurmarg, currently hogging the headlines over the Metro 3 carshed controversy, RR for residences has been reduced to Rs 1,24,320 per sq mt from Rs 1,52,350, for offices Rs 1,30,700 from Rs 1,60,450 per sq mt, for industry Rs 1,18 400 from Rs 1,44,510 per sq mt.

The revision in RR rates was also done in Borivli, Kurla, Chembur and Andheri. In Gorai, Borivli taluka, the RR has been increased to Rs 24,860 from Rs 17,730 per sq mt. In Majas zone, which falls in Andheri taluka, the RR has been revised to Rs 62,120 from Rs 31,600 per sq mt. In Marol zone, which also is a part of Andheri taluka, the RR has been reduced to Rs 69,410 from Rs 90,610 per sq mt.

Further, the RR in Ghatkopar, which falls in Kurla taluka, has been cut to Rs 48,730 from Rs 78,640 per sq mt while in Bhandup, it has been reduced to Rs 47,900 from Rs 55,780 per sq mt and in Chembur, RR has been reduced drastically, to Rs 25,850 from Rs 1,14,570 per sq mt.

‘‘Once the RR is published, IGR does not have powers to modify the rates as per the Maharashtra Stamp (Determination of True Market Rate of Property) Rules, 1995,’’ says a senior revenue department official. He said the department would have to make its stand clear on who would refund the property buyer who had already paid excess stamp duty based on RR rates that came into effect from September 12.

Another official hinted that the ball was now in the court of the revenue minister and the Chief Minister. The Free Press Journal is in possession of the zone-wise changes made in RR and the relevant notification.

Leader of Opposition Devendra Fadnavis has strongly criticised the revision in RR rates, saying that developers with large chunks of land parcels in the western suburbs and city will benefit. ‘‘One of the zones, which comprises premium land by sea ad measuring 2 lakh sq mt, is now defined as a new zone. Earlier, the RR rate was Rs 1,18,000 pr sq mt but overnight it has become Rs 35,000 per sq mt, which is a 72 per cent reduction,’’ he noted.

The MVA Government, in a bid to provide relief to the ailing realty sector, had reduced RR rates by 0.6 per cent in Mumbai but in the state, these had risen by 1.74 per cent on average. In rural areas, RR rates had increased on average by 2.81 per cent, in influence areas by 1.89 per cent, in municipality and nagar panchayats by 1.29 per cent and in municipal corporation limits, by 1.02 per cent.

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