Ready Reckoner 2017: Mumbai legislators oppose hike in RR rates

However, only three legislators, Parag Alavani and Atul Bhatkhalkar from the BJP and former minister and Congress MLA Arif Naseem Khan, turned up for the meeting on Monday. All the three elected representatives told Kushwaha that a hike in RR rates would be a bad idea.

The meeting is part of an annual consultation exercise undertaken before a decision on revision in RR rates. The collectors then submit a report to the office of the Inspector General of Registration and Controller of Stamps, which takes a final call.

A general trend observed over the past few years is that the new RR rates are at least 10-15 per cent higher than the previous year’s.

Atul Bhatkhalkar, BJP legislator from Kandivali East, said that though the hike would mean more revenue for the state exchequer, the government should not increase the rate for flats measuring less than 800 square feet. “The recent reduction in interest on home loans by 1 per cent, is expected to boost housing for the poor. If RR rates are hiked, it will go against state and central governments’ efforts to provide housing for the poor,” he said.

Bhatkhalkar also demanded that every year, the rates should be fixed by undertaking a neutral study and that it should be made available to elected representatives for their views.

Congress MLA from Chandivali Arif Naseem Khan said the hike would also impact stamp duty charges. He reasoned that the ongoing recessionary phase had a huge impact on property transactions. “Any hike in rates will worsen things,” he said.

The legislators alleged that there is a vast difference between the Ready Reckoner rates and the actual market price. They say that the actual market value is almost 20 to 25 per cent less than what is mentioned in the Reckoner.

According to Khan, the hike in RR rates has been around 10 per cent to 15 per cent in 2015 while the same was hiked between 7.5 per cent to 15 per cent in 2016. “The last two years have seen an increase in the RR rates up to 15 per cent. The BMC considers the RR rates fixed by the state as a benchmark and increases assessment tax, premium on new building projects, water charges and all civic rates. This in turn puts extra burden on middle class families,” Khan said. Khan even suggested rolling back the previous years’ “unnecessarily” hiked RR rates.