Mumbai: The Maharashtra government will not announce the ready reckoner (RR) rates on March 31 as the revenue department staff is busy combating the coronavirus crisis.
Generally, new rates come into effect from April 1. RR rate is the standard value of an immovable property assessed and regulated by the state.
These rates also help to calculate the true market value of immovable properties -- including land, residential, commercial and industrial --for any area defined and published by the state government. Minister of Revenue Balasaheb Thorat tweeted:
"Every year the ready reckoner rates are revised on March 31, but for the last 15 days the revenue officials are working to curb the coronavirus outbreak. So, this year the ready reckoner rates will not be announced on March 31.
It will be announced after we overcome this crisis.’’ The government decision will be a big relief to the ailing realty sector and the property buyers who were struggling to cope up with the economic downturn and the impact of coronavirus outbreak.
Ruling and opposition party members, as well as realty players, had called upon the government to not hike RR rates but maintain a status quo for 2020-21 fearing that it will further impact the realty sector and dampen the buying sentiments during the slowdown. It is learnt that the government may ultimately decide to maintain a status quo in RR rates for 2020-21.
The National Real Estate Development Council President Niranjan Hiranandani suggested that the government must reduce the RR rates by 15 to 20 per cent so that the benefit of reduction of prices will go to the ultimate consumers.
We are happy with the 1% reduction in the stamp duty in the annual budget for 2020-21. However, further benefits in terms of reduction in development charges, land under construction and other charges also required to be rationalised,’’ he noted.
The Brihanmumbai Developers Association shared Hiranandani’s views saying that the government should not revise the RR rates following the complete lockdown. "The construction industry is hugely hit due to the lockdown and because of a slowdown. The industry will take some time to revive.
If the government revises or rises the RR rates in such a situation then it will further adversely impact the construction sector. Already, due to high RR rates and premiums, the redevelopment projects are not feasible in Mumbai," said Harnish Kumar Jain, vice president of the Associat