State to earn Rs. 6.5 crore in property transaction dues

The State government will recover dues of Rs. 6.5 crore from individuals and organisations that carried out property transactions in Mumbai during a four-month stay on the 2017-18 Ready Reckoner (RR) rates.

The government had lifted the stay on the RR for the Mumbai Metropolitan Region, issued by the Inspector General of Registration on April 1, 2017, in October 2017.

“The State cabinet had already given approval to the recovery process. We have calculated the amount [and it] comes up to over Rs. 6.5 crore. We will start sending out notices to those who had carried out transactions during the period,” State Revenue Secretary Manukumar Shrivastava told
The Hindu

The RR, published annually, is a reference sheet for property rates in different locations. It was put on hold in 2017 following objections raised by the Maharashtra Chamber of Housing Industry (MCHI-CREDAI), the apex body representing builders in the Mumbai Metropolitan Region. MCHI-CREDAI had demanded government intervention, claiming that the hike was abnormal for the year and would hurt industry sentiment in an already slow property market.

The government had stayed the RR for four months, but later lifted the stay after a high-power committee had heard the grievances of the construction industry. The committee had ruled out any revision of the RR rates. “Now we want to recover any arrears pending based on the changes,” Mr. Shrivastava said. The high-power committee had said that the government’s financial position did not allow for a revision of rates, and that the State needed to improve revenue collection in the wake of a global economic downturn. “There was no way a revision could have been possible in that scenario,” said an officer.

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