Ready Reckoner rates increased by 17%

By Accommodation Times (www.accommodationtimes.com)
MUMBAI:
The state government has increased the city’s Ready Reckoner rates with an average of 17%, it will be effective from 1st Jan 2012. Whereas in several other areas of city such as Versova, Prabhadevi, Cuffe Parade and Dadar will see hike upto 30%, though Vile Parle will see a 140% jump.
As the calculation of RR on market value of flats for stamp duty and registration charges is the major source of income after the sales tax and value-added tax.
Reacting on the hike of ready reckoner by state government, MCHI President Paras Gundecha expressed his view that “this is the beginning of an unhappy New Year for the customer.” The industry, on behalf of the consumers, has been campaigning for a reduction in RR rates by 20% since the rates have been very high. MCHI had, in fact, represented to State Revenue Minister Mr. Balasaheb Thorat explaining the hardships being faced by the customers in view of burden on account of inflation, service tax, high cost of funding, VAT and labour cess, Gundecha added.
Contrary to this market experts said that, the hike of 17% in ready reckoner rates will not be affect to new flat purchase, sales and property deals as the rates quoted by developers in some places are almost 40-80% higher than that quoted in the RR. They added that, whereas the increase will definitely affect on the old property purchase and sales transactions due to the 16% increase in the cost of construction under the new calculus.