Decision irks revenue department, but it will help house buyers
The Maharashtra government’s view against increasing ready reckoner (RR) rates at the beginning of the year did not sit well with the revenue department, which fears losing a huge chunk of revenue if the move is carried out. The state government, every year, increases the rates of the RR by 15 per cent on an average. However, this time it is of the opinion that the rates should not be increased owing to the slowdown in the property market. “It is true that the state government is of the opinion that the ready reckoner rates should not be increased this time, as the real estate market is slow. The decision — if taken — will help buyers, as prices will be stabilised. But the revenue department will lose a major chunk of revenue by keeping the rates the same as the previous year,” an official from the revenue department said.
Property rates are based on RRs decided by the revenue department at the beginning of every year. The rates are usually increased depending upon the purchase and sale of properties in particular areas. They are usually increased, except in a few cases.
“Property rates have always been very high in Mumbai, but this year the expected transactions did not happen. There are lot of empty flats. If the RR rates are kept constant, prices will come down slightly, helping buyers. It will also boost the state government’s affordable housing efforts,” an official from the housing department said. Experts were of the view that the Maharashtra government’s move would benefit the people.
“It is true that the government is not going to increase the rates this year.
This will bring some relief to buyers. But considering the overall sluggishness in the market, the government should have reduced the RR rates. In past, the Vilasrao Deshmukh government had reduced the rates to give some comfort to the public,” said expert Vinod Sampat.
