Credai demands RR rates as per Bombay stamp rules 2018

The real estate body, Credai, has urged the state government to take a look at the amended Bombay Stamp Rules — allowing to reduce the Ready Reckoner rates for the first time — and reduce prices at some pockets during the revision next year. The Confederation of Real Estate Developers Association of India (Credai) has asked the government to go for micro assessment of area-wise rates and reduce the rates according to the amended Bombay Stamp (Determination of True Market Value of Property) Rules, 2018. The Rule 4 was amended in March this year, allowing both increase or decrease, unlike only “increase” over the years. “Even after the amendment, the state government did not get a chance for revision because there was no change in RR rates this year. The next year is an election year and the government has four months in hand. It can be utlised to check the rates in details for every small area and ensure correct rates,” said Credai state presidentShantilalKataria, adding that a demand in this regard had been made to the government. The Credai members in their demands stated that RR rates need to reflect the true market value. Credai has been urging the government to reduce the RR rates as the real estate industry has been in a bad shape for the past three-four years. “Earlier, the rates were only increasing. Now that Maharashtra, like other states, has a provision to decrease the rates, the housing sector will get a boost,” stated the Credai statement. “The amendments should be followed because many areas have a high RR value when the sale or transaction are not good enough,” said a Cerdai member. RR rates are used to assess the market value of properties by the government. Stamp duty and registration charges are paid on this basis. The rates are revised every year on April 1. The RR rates steadily increased over the years. Last year, there was no change in rates.Officials from the state government stated that until now there was no announcement about RR rates. It was confirmed that the model code of conduct would not affect the announcement of the RR rates. The increase or reduction in RR rates impacts buyers in a significant way because 5% stamp duty has to be paid according to the RR rates. In some cases, the actual sale may have taken place at a lower rate. MadhaviSanap, a real estate observer, said RR rates were more than the market rate in some places. “As builders and buyers have to pay income tax based on the RR rates and not the market rates, a conscious decision should be made in this regard,” she said.