The ongoing economic slowdown and a dip in the registration of property may prompt the Maharashtra government to take a pause in the revision of the ready reckoner (RR) rates for Mumbai and rest of the state.
The department of stamps and registration’s proposal for an average hike of 20 per cent from January 1 has faced stiff opposition from legislators of the ruling Congress as well as Nationalist Congress Party. Today, they even submitted a joint representation on the matter to state revenue minister Balasaheb Thorat.
A senior state government official said the RR rates were, typically, decided by the office of the inspector general of registrations (IGR) in Pune. “The issue was discussed at a recent meeting held between the IGR and the senior ministers,” he told Business Standard.
“Some of the ministers and departments took the stand that the RR rates should not be revised from January 1, as it may further affect the registration. However, some preferred a revision in order to mop the much needed revenue for the state.” The official said the RR rates remained at an average 10 per cent for five years from 2006. “The decision to maintain a status quo was taken in 2009 in the wake of global economic crisis that started in September 2008,” he recalled. “This year, the RR rates were increased by an average 30 per cent. In Mumbai area, the collection of stamps and registration had fallen by 20 per cent at Rs 2,800 crore in October this year, compared to Rs 3,500 crore of the corresponding period last year.”
Equity brokerage Prabhudas Liladher has, in its report, said registrations of the sale of properties have hit a 31-month low in Mumbai due to high realty prices and mortgage rates.
The sales registrations for November dipped 20 per cent on a year-on-year basis — to 4,060 units. Taken month-on-month, the percentage was 12, adds the report.
Former minister Chandrakant Handore, who is one of the signatories in the representation made to the revenue minister, claimed that the legislators were unanimous in their demand that the RR rates should not be revised from January 1. “The government should maintain a status quo,” he said.