Thaindian News

Mumbai, Dec 22 (IANS) Reeling under severe inflationary pressures, Maharashtra’s realty industry Thursday welcomed Chief Minister Prithviraj Chavan’s assurance that the ready reckoner rates would not be revised in 2012.

Ready reckoner is the basis on which stamp duty and registration charges are levied by the government for any new residential or commercial property transactions and can add as much as between 5-10 percent to its total cost.

Maharashtra Chamber of Housing Industry (MCHI) president Paras Gundecha said that in view of the ongoing inflation, the realty picture presents a grim scenario, with a fall of as high as 30 percent in property sales and registration.

“The existing tax structure has not attracted more customers, and hit hard with multiple taxations, prospective buyers have become fence sitters,” Gundecha said.

A delegation of MCHI members recently called on state Revenue Minister Balasaheb Thorat, who assured them that the chief minister had decided against increasing the reckoner rate.

The MCHI pointed out that in order to boost sales, developers and builders have already been offering attractive discounts to customers.

According to Gundecha, the sector that supports 200 other industries is under tremendous pressure and apprehended that the continuing negative sentiment could hamper the government’s dream of creating affordable housing for people.

With over 1,000 developers spread in Mumbai, Thane and Raigad regions, the MCHI accounts for nearly 80 percent of all development of residential and commercial property in the area.