In contrast to PM’s vision of affordable housing, the government shows inclination to hike up the ready reckoner prices; most MLAs reject idea
Post demonetisation, there has been a slowdown in most sectors, including real estate, and lawmakers are worried the proposal could make matters worse. File pic
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It appears that the state government and the Prime Minister have not yet had the ‘conversation’ about BJP’s affordable housing dream. So even as Prime Minister Narendra Modi’s recent demonetisation move has forced the banks to reduce the lending rates for housing loans, Maharashtra government’s contemplation about increasing the ready reckoner (RR) rate might turn things dicey for property buyers.
On Monday, Deependra Kushwah, Mumbai suburban collector had called a meeting of the MLAs to get their feedback before deciding on the quantum of the RR rate hike in the city. However, both BJP and Congress MLAs pleaded that any move to increase the RR rate would hurt the real estate sector, which is already plagued by the slowdown in the economy.
What MLAs say
Parag Alwani, a BJP MLA, stated that the system and procedure to decide RR rates needs to be reviewed. “There is no scientific study for deciding the rates. Also, the RR rates should only be limited to deciding the stamp duty; not be the parameter to decide property tax and premium for redevelopment of buildings. Else, the redevelopment process will become unaffordable and come to a halt.”
In 2015, the RR rate was increased by 15 per cent and in 2016 the rate were again hiked ranging from 7 per cent to 15 per cent. RR rate are the price at which government fixes the stamp duty to be levied for sale and purchase of the property.
Echoing similar views, Congress MLA, Arif Naseem Khan, cited that any hike in ready reckoner rates would lead to increase in cost of living for citizens. “Post demonetisation, there is slowdown in every sector. Keeping this in mind, the BJP-led government should provide relief to taxpayers by rolling back the RR hike that it has done in the past two years.”
Black money vs Modi’s vision
Referring to the flow of black money in the real estate sector, BJP MLA Atul Bhatkhalkar said that the administration should table the existing rates and a realistic price for property.
“At many places, the RR rates are higher than the actual market price at which transaction takes place, and in some markets, prices are much higher than the rates decided by the government. A scientific study needs to be done to end the disparity.”
However, Bhatkhalkar was against any move to increase the rates on the ground that the move would be contradictory to Modi’s vision. “Banks have cut down their lending rates. So an RR rate hike would defy the purpose, as the cost of the flats would increase,” the MLA added.
Despite repeated attempts, the Mumbai suburban collector was not available for comment.
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