Mumbai: It’s now official. In a big relief to the realty sector and the property buyers, the Maharashtra Government has taken a decision not to change the ready reckoner (RR) rates for 2020-21 but the rates applicable for 2019-20 will continue to be in place till further orders. The government decided to maintain a status quo in RR rates in the wake of present coronavirus crisis. FPJ broke the story on May 20.
RR rate is the standard value of an immovable property assessed and regulated by the state.
The government, after the imposition of lockdown on March 22, had decided not to revise the RR rates from April 1 and later announced the status quo till May 31 whereby RR rates applicable during 2019-20 will be charged. The government had mulled to extend the RR rates of 2019-20 till July 31 but now has decided to apply same rates till further orders.
The Inspector General of Registration Omprakash Deshmukh on Tuesday issued the notification. He explained that generally the RR rates are revised from April 1 every year but this year due to coronavirus lockdown it was not done. The government had given its consent to apply RR rates of 2019-20 up to May 31 but now it has been decided to continue the same rates till further orders. He said that the stamps and registration department could not revise the RR rates because of ongoing lockdown.
Ruling and Opposition parties in their representations had urged the state government to maintain the status quo in the RR rates especially when the sentiments of home buyers are low during the current lockdown. They had also argued that the realty sector has been badly hit due to the lockdown and economic down and revision in RR rates will have a cascading effect.
Incidentally, the government in the annual budget for 2020-21 had announced a 1% reduction in the stamp duty. However, the realty sector is pursuing with the government for further relief including reduction in development charges and rationalization in land under construction and other charges.
Builders Association of India spokesperson Anand Gupta said the realty sector is currently going from a difficult phase. ‘’We are expecting the reduction in RR rates which could have also resulted in a decrease in development charges, FSI premium and fungible FSI. Therefore, the government instead of maintaining the status quo of RR rates of 2019-20 should in fact consider reduction in it for the current fiscal,’’ he noted.
Meanwhile, the Sub Registrar's Offices in Greater Mumbai have started functioning between 10 am and 5 pm for registration of properties. However, E Token booking is required appointment. The stamps and registration department expects registration to increase slowly and steadily with the relaxation in lockdown.
