State government unlikely to roll back revised ready reckoner rates in Thane

THANE: The state government is unlikely to accede to the demand of developers to roll back the new ready reckoner (RR) rates in Thane.

This year, the government raised RR rates by 10% to 20%. Builders complained that this would increase property prices by 5-7%. The developers' association had recently written to chief minister Devendra Fadnavis asking the administration to either roll back the hike or reduce it. But the BJP-led state government is no mood to accept the suggestion as it wants to curb the circulation of "black money" in the real estate industry.

State officials pointed out that there is huge gap between the market price and official rate (ready reckoner) charged by some builders.

"Every year, developers can't keep increasing property prices by 10-15%, especially when the market is facing a tough time with poor sale of flats and rising inventory. If the government keeps increasing RR rates by an average of 10-20% a year, at some point the gap between the official rate and the prices at which developers sell their flats will narrow down. The move will help the administration keep a check on the ill practices in the industry," said an official close to the chief minister.

For instance, if the RR rate in Thane is Rs 7,000 per sq ft, developers sell the property for Rs 10,000-12,000 per sq ft. This clearly means that additional amount is not mentioned in the agreement and the buyer or investor pays the additional money in "black".

Based on the RR rates of an area, stamp duty and registration charges are calculated for a property.

The ready reckoner guide is published every year with the revised minimum rate fixed by the state government for property transactions. No property sale or lease can be executed below these fixed rates.

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.