Maharashtra Deputy CM Fadnavis assures developers of discussing stamp duty waiver, premium discount in next cabinet meeting

CREDAI-MCHI president Boman Irani said, “We are confident that the four-day exhibition helped bring all the stakeholders together to deliberate on many critical issues, and it has set a tune to bring MMR real estate market on the global map. Moreover, we are optimistic that in the coming days, the government will take a positive step toward our recommendation, especially on stamp duty reduction and premium discounts.”

Competent authorities like Brihanmumbai Municipal Corporation (BMC) collects 22 premiums from property developers under various headings, including floor space index, staircases, lift wells, lobbies and so on. According to the realty industry, it is higher than the premiums in other major cities.

The developers in Bengaluru pay only ten different premiums while those of Delhi and Hyderabad five and three respectively, they said. As a result of the current market environment of compromised liquidity, premiums can act as crippling factors. Mumbai real estate developers incur an average of 1/3 of their total project costs in premiums, they said.

CREDAI-MCHI chief operating officer Keval Valambhia said, “We have requested a 50 per cent discount on the current premium charges from both the chief minister and deputy chief minister of Maharashtra.”

He said they are hopeful that the government would decide on this soon, especially because in the wake of the 50 per cent discount scheme during the pandemic, the BMC received Rs 12,000 crore revenue. “Municipal corporations, MHADA, and the SRA have benefited from the concessions and the building industry. This is a win-win situation for all stakeholders,” he pointed.

According to the organisers, the expo witnessed record sales and an unprecedented number of visitors making it the most successful edition to date. The expo was held by CREDAI-MCHI, the apex body of Mumbai Metropolitan Region real estate.