With the state and city seeing a 10-15 per cent rise in ready reckoner (RR) rates,unhappy realtors said the decision was not taken in consultation with the builders. Credai chairman Lalitkumar Jain said the decision would harm the industry and the state.
I think the government has taken the decision in haste. There is no synchronisation in the decision making, said Jain after the RR was announced on December 31. The RR rates for the state and the city have been at 10-15 per cent. While urban areas saw a 5-10 per cent increase,in rural areas it has increased by 10-15 per cent.
Jain added that the decision would harm the interest of the states revenue generation as property sales were slumping
already. For the developers,their capital cost will go up,which in turn will increase the sale price. Last year,the state had increased the ready reckoner rate by 20 per cent.
The ready reckoner is the basis for the calculation of the market value of flats for stamp duty and registration charges. Both are big sources of revenue for the government after sales tax and value-added tax.
The RR rates are used as a reference or a base price for various land deals,acquisitions and property-related matters. Generally,the rates in the open market are much higher than the RR rates,but government approval plays an important role with regard to compensation,fixing prices and land acquisition.
State IGR S Chockalingam said the increase in Pune and Mumbai was a little less as a majority of the residents belonged to the salaried class,who opted for loans.
The rates are calculated by the documents registered,property exhibitions,field visits and websites,said IGR department officials.