Location,other parameters to replace ready reckoner

“It’s in the final stages of approval. A detailed plan has been submitted to the government. The district-wise plan will soon be chalked out,” said Inspector General of Stamps and Registration,Maharashtra,Ramrao Shingare who prepared the plan.

Prepared with the help of the geographic information system (GIS),the department felt that the value of property should be based on the availability of amenities,its distance from the railway station,the scope for further development,status of title and floor-space index; and once all these factors are considered the stamp duty can be accordingly fixed for the area. “Those properties that are away from these areas will obviously be charged less stamp duty contrary to the present ready reckoner which does not take into consideration such factors,” a senior official said.

The new system will take into consideration the overall changes that have taken place in the area in the last few years. “Malls,multiplexes,business centres and special economic zones in areas with better infrastructure will fetch more stamp duty. The present system pans the overall area and not pockets and there is a need to focus on these areas.”

The ready reckoner concept was introduced in 1989,in which the city was divided into several zones and prices of the bygone year formed the base for deciding the stamp duty for the year on January 1.

Satish Magar,president of builders’ organisation CREDAI,said they were opposed to the ready reckoner system that led to steep increase in valuation. “We are not clear about the proposal and will adopt a wait and watch approach.”

Real estate consultant Rajan Anthony,however,said the new proposal could lead to a rise in property rates. “It’s a known fact that builders always charge more than the ready reckoner. So if the area with all facilities will see an increase,the rates will only go up. One is not sure how this will affect the realty market.”

On the flip side,the rates in fringe areas with relatively less development will be rated lower,he said.

Another realtor Mahaveer Sodi said the present system had the entire zone being charged the same duty irrespective of the real value of the property. “This will help in better assessment of property.”