Property Registration Department Achieves 83% of Revised Revenue Target in Pune, ET RealEstate

March 3, 2024

PUNE: The property registration department has achieved 83% of its revised revenue target of Rs50,000 crore for 2023-24 with over two lakh monthly registrations between April 1 and Feb-end.

Ahead of the end to the financial year on March 31 and announcement of the new Ready Reckoner (RR) rates, the department has been earning over Rs3,500 crore every month, a registration department said on Friday.

Till Feb-end, the total registrations for the financial year in the state stood at 24.98 lakh with the revenue collection at Rs41,911.51 crore. The registration department is the second largest department to generate revenue for the state exchequer. Its target for the fiscal year was revised to Rs50,000 crore from Rs44,000 crore because of the high spate of registrations and revenue collection.

Developers have already requested state govt to keep the RR rates unchanged to ensure the current market buoyancy continues. The RR rate, also known as the “circle rate” or “guidance value” in several parts of India, defines the minimum per square foot rate of a property fixed by state govt.

According to the law, one cannot sell a house at a rate below the RR rate that is deemed to be the minimal market rate. However, if one sells his or her house at a value higher than the RR rate, then the buyer’s stamp duty and other charges get linked to that rate.

In their representation to govt in January, state CREDAI had said the RR rates should not be changed this year too. State Credai president Pramod Khairnar told TOI, “The market has been buoyant. There should not be any disturbances to the trend by increasing the RR rates. We suggested somes changes in the footnotes that mention charging stamp duty for potential FSI. It should be rationalised and charged as per the FSI used.”

Credai national vice president Sunil Furde said they had been demanding that the rates should be constant as the market was “steadily improving”. He said, “Data showed that property registrations have picked up and the revenue generation has also been good for the department. As 2024 is the election year, there is no reason for state govt to make any changes as of now.”

Ahead of the Lok Sabha elections, Maharashtra may have to seek permission from the Election Commission of India (ECI) for announcing the RR rates on April 1 if the code of conduct came into effect by then, a revenue official said.

In 2022-23, state govt had increased the RR rates by an average of 8.8%. Barring Mumbai, the RR rates of all municipal corporations were increased by 8.8% from April 1, 2022. The rates were raised by 5.9% in 2017-2018.

  • Published On Mar 2, 2024 at 06:00 PM IST

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