Nagpur: In a major relief to both homebuyers and realty developers, the Government of Maharashtra has decided not to hike the Ready Reckoner rates in the State for the financial year 2023-24. This means that buyers will not see any jump in prices anytime soon.
The ready reckoner rates, which are revised every financial year, are the benchmark for Stamp Duty calculation and valuation of a property for income tax purposes. Any hike in RR would be catastrophic for the demand, especially in the affordable sector, given a high-interest rate regime and low demand in most categories. Demand in most housing categories except the luxury segment has stalled off late.
Some news reports earlier claimed that the State Government was planning to hike the RR, causing panic among real estate industry leaders in the western state. Ready Reckoner rates refer to the minimum rate at which the properties (land and buildings) within a particular area are valued by the state government for the calculation of stamp duty and registration charges. The rates are updated and published by the state government annually, usually in the month of January.
The Ready Reckoner Rates are determined based on various factors such as the location, infrastructure, amenities, and demand for the area. The rates vary from one area to another, and within an area, they may differ for different types of properties, such as residential, commercial, and industrial.
Satyanarayan Bajaj, Deputy Secretary to the Government of Maharashtra, issued a letter in this regard to the Inspector General of Registration and Controller of Stamps, Maharashtra. As per the letter, there will be no change in the Annual Schedule of Rates (ASR) for 2023-24. Thus, the rates for 2022-23 will continue to be in effect.
However, the letter also mentions that the Inspector General of Registration and Controller of Stamps should take an appropriate decision as per rules in case of the applications moved by developers or other ordinary citizens regarding upward or downward revision in ASR or RR rates for certain areas.
According to reports, in Nagpur also, several applications have been already moved via Nagpur office to the Town Planning Department at Pune. In a few days, the department is likely to issue another communique regarding these applications. Barring that rectification of anomalies, the RR rates will remain the same as in 2022-23. The Stamps and Registration Department of the State Government prepares ASR of properties in Maharashtra.
The ready reckoner rate is the minimum value which is considered for paying the stamp duty to the State Government or capital gains tax to the Centre. This means even if a property exchanges hands at a lower price, the duty and tax have to be paid as per ready reckoner rate.
As the move has brought cheers to builders and home buyers, reports say a hike was proposed by the Town Planning offices in the State, including Nagpur. Based on a year-round exercise, it was found that the values have gone up in certain pockets of the city for which close to 10% hike in ready reckoner rates was suggested. It was also 5% for some areas, said sources. The rates were increased last year, but there have been years, including the Covid times, when there was no revision.
The highest ready reckoner rate for a residential property in Nagpur at present is at over Rs 10,000 a square feet. This is for properties in areas like Wardha Road, Central Bazaar Road and parts of Civil Lines. This is followed by a rate of Rs 8,100 in nearby localities, according to the current ready reckoner schedule.
Reports said property rates in the high-end segment are certainly higher in Nagpur City. Even if the official rates may be up to Rs 10,000, there are properties priced up to Rs 13,000 a square feet. The highest rates at Rs 15,000 a square feet.