Maharashtra has kept the Ready Reckoner (RR) rates unchanged in fiscal 2019-20 for the second consecutive year. The decision was taken at a meeting attended by prominent ministers, and the requisite guidelines would be given to the town planning department and the Inspectorate General of Registration and Stamps (IGR).
To compute the market value of properties, the government considers RR rates. Besides, stamp duty and registration charges paid while purchasing a property are also decided basis RR rates, which are changed every year. The State had increased the RR rates by 3.9 percent in 2017, while it kept them unchanged in 2018-19 following a slowdown in the sector.
For long, real estate developers have been requesting the government not to increase the RR rates. They also asked for a correction in RR rates after the amendment in the Bombay Stamp (Determination of True Market Value of Property, 1st amendment) Rules, 2018, that empowered the chief controlling revenue authority to decide the RR values.
The builder community also recommended the government to use a micro-mechanism rather than the average calculation system, to decide the RR values of each area.
The decision to keep the circle rates in Maharashtra unchanged will bring stability in residential property prices across Maharashtra and also monitor property tax outflow and stamp duty.
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