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Opposition parties as well as a section of the ruling party in Maharashtra on Wednesday criticised the proposed hike in the ready reckoner (RR) rates, saying such a move would further weaken the crisis-hit realty sector and make purchase of residential properties unviable for the common man.
Legislators from Shiv Sena, Congress and Nationalist Congress Party (NCP) and the Bharatiya Janata Party (BJP) said the 20 per cent rise in RR rates from January 1, as proposed by a section of officials in the state revenue department, would be strongly opposed.
The legislators said they would voice their protest at separate meetings convened at the offices of district collectors of Mumbai and Mumbai suburban district on November 28.
On January 1 this year, RR rates were raised by 10-20 per cent in 711 out of the 737 zones in Greater Mumbai, and 20 per cent in 26 zones. The rest of the state witnessed an increase of 10-40 per cent.
RR rate is an annual statement of property rates based on which the stamps and registration department collects stamp duty from buyers.
It is the basis for the calculation of the market value of flats for stamp duty and registration charges.
If the government decides to increase RR rates, property buyers will have to shell out more in terms of higher value-added tax, service tax and stamp duty, leading to the overall rise in property prices in the city.
Against the target of Rs 19,000 crore for 2014-15, the government has so far mobilised Rs 14,000 crore through stamps and registration duty.
State revenue minister Eknath Khadse said his department would hold dialogue with city legislators on Friday to seek their views. He told Business Standard: “There is no blanket proposal of 20 per cent rise in RR. It can be for certain regions,” he clarified.
BJP legislator from Kandivli seat in north Mumbai Atul Bhatkhalkar said: “The government should not hike the RR rates especially when the realty sector is passing through a crisis. The rise in RR will make purchases of housing stocks unattractive. I will oppose the hike, if any, being proposed by the revenue department.”
He suggested, instead, that the Reserve Bank of India should cut the repo rate in the ensuing credit policy to help the realty sector stay afloat.
The BJP's former ally Shiv Sena also opposed any revision now. Sena legislator from Jogeshwari in north Mumbai Ravindra Waikar said even though the realty prices were currently declining, an increase in RR rates would reverse the trend making the residential properties unaffordable to a large number of people.
NCP spokesman Nawab Malik shared Waikar's view saying the government should take a realistic view before making any changes in RR rates.
Congress legislator from south Mumbai, Ameen Patel, said a revision in RR rates will further increase stamp duty leading to a rise in property prices. “This will go beyond common man's reach. I will protest against hike in RR,” he added.
Anand Gupta, spokesman, Builders Association of India, said the increase in RR rates couldn’t be justified given the fact that there has been no rise in property rates in the past year.
