RR rates likely to remain steady in next fiscal year

Source: The Hitavada      Date: 30 Dec 2016 10:32:38


Special Correspondent,

Demonetisation and economic slump affect property transactions to the extent of around 40 per cent in Nagpur Division

Economic slump and demonetisation have had their impact on Ready Reckoner (RR) rates of land/property in Nagpur city and rural areas, to the extent that transactions came down by around 40 per cent. As a result, in the New Year, RR rates are likely to remain steady. State Government is trying to give a boost to sluggish realty market by maintaining RR rates in 2017-18.

Since 2016-17, the State Government led by Bharatiya Janata Party (BJP) and Shiv Sena has adopted a policy of revising RR rates at the start of financial year, that is, from April 1 every year. Previously, these rates used to be revised from zero hours of the new year, that is, from January 1. This time, though the revision is still a few months away, given the economic slump and demonetisation, RR rates are likely to remain steady in the new financial year.

Sources claimed that demonetisation has hit the property market badly in the State. In November and December, 2016, transaction of properties reduced by around 40 per cent. In Nagpur Division, till November 30, Stamps and Registration Department collected revenue of Rs 588.50 crore against the total annual target of Rs 1,112 crore. Already, this was reduced target. Previously, State Government had given the target of Rs 1,300 crore. In the given situation now, sources believe that revenue collection at the end of financial year 2016-17 may be only Rs 800 crore in the division. The revenue collection in November was the lowest as compared to earlier months.

According to sources, Stamps and Registration Department is anticipating better transactions in new year, as no big land deals got registered in last two months of the year 2016 so far.

A builder said that buyers were away from the market due to demonetisation as they did not have enough cash and busy in depositing their cash in the bank to save their hard-earned money. The market may not come up in next one year, he added. An official said that the property transactions witnessed a low because of cash crunch also, since buyers were unable to pay to builders seeking payment of part of the total amount in cash only.
District Collector Sachin Kurve organised a meeting of public representatives on December 20 at Collector office to discuss the policy regarding RR rates. However, not a single public representative attended the important meeting. Last year, State Government had given major respite to boost sluggish property market as hike in RR rates was only 3 per cent as compared to previous year, in municipal corporation areas.