As the saying goes, the devil lies in the details. Even though the revenue department said on Thursday that there has been an average 5 per cent hike in ready reckoner (RR) rates in Maharashtra and 2.34 per cent in BrihanMumbai Municipal Corporation limits, there has been a rise in land rates and also rates for residential, industrial, commercial establishments in Greater Mumbai. Rates have been reduced only in some suburban pockets.
Based on the revised RR rates, a property buyer purchasing a Rs one-crore flat in Borivli would have to pay an additional Rs 35,000 towards stamp duty and 1 per cent metro cess. In Borivli, though the RR rate for land has been reduced by 1.64 per cent, there has been a 7 per cent hike in residential rates, 6.28 per cent hike in office rates, 2.77 per cent for shops and 7.24 per cent for industry.
In Andheri, a flat buyer would have to shell out Rs 42,000 more, for a flat costing Rs 1 crore. The department in Andheri has reduced RR rates for land by 0.47 per cent but rates have risen by 2.97 per cent (residential), 5.21 per cent (office), 1.49 per cent (shops) and 4.26 per cent (industry).
In Bhakti Park, adjacent to the Mumbai Freeway, the government has reduced the land and residential RR rates by 10 per cent. In this case, property buyers will have to pay less stamp duty.
For the first time, the department has carved out a Mumbai Port Trust area in Deonar, where the RR rates for land and residential have been increased by 63 per cent. Here too, property buyers will have to shell out more stamp duty, on aggregate market value or agreement value, whichever is higher.
The department has also created a new zone for Mumbai Port Trust lands in view of a slew of developments lined up there. This is also at a time when the government is pursuing the completion of the Mumbai Trans-Harbour Link and the Mumbai Port Trust has embarked upon a mega development plan.
The department has increased RR rates by 50 per cent by creating a new zone in Mazgaon division, where new realty projects are being developed.
In Mumbai city, the department has, by and large, reduced the RR rates.
“By and large, the department has substantially increased RR rates in various zones that will have a major impact for property buyers in the payment of property tax because property tax is now charged on RR rates in Mumbai, which will generate additional revenue for the government,” said a senior revenue department official.