To encourage real estate and construction sector, the Congress government in Madhya Pradesh on Wednesday reduced collector guideline rates in the entire state by 20 per cent.
Several builders and real estate developers in the state capital had been demanding for last few years that the rate should be reduced because the sector had slumped and thousands of properties had remained unsold. They argued that the rates had been abnormally increased and took the properties beyond the reach of common buyers.
The cabinet meeting chaired by Chief Minister Kamal Nath, however, decided to increase the registry rate to ensure that the government revenue loss is offset. The stamp duty will also be increased from 7.3 per cent to 9.5 per cent across the state and from 10.3 per cent to 12.5 per cent in urban areas.