Maha raises property registration charges

In a shocking news for home buyers and property developers in the state, the Maharashtra government has fixed a flat rate of 1 per cent for registration of all properties, irrespective of their market value, according to sources.

Earlier, one had to pay a maximum of Rs 30,000 as registration charges irrespective of the market value of the property. The buyer had to pay either Rs 30,000 or 1 per cent of the property, whichever was lower.

Under the new rules, a purchaser of an apartment worth Rs 1 crore will have to shell out registration charges of Rs 1 lakh as against the earlier charges of Rs 30,000.

The sources said the move was aimed at garnering more revenues for the government, which was facing a financial crunch due to the ongoing recession, implementation of the Sixth Pay Commission and loan waiver to farmers.

In 2008, the government had increased the property values in the ready reckoner, which does the valuation of properties to calculate the stamp duty on them.

Property developers and consultants Business Standard spoke to said the move would put further strain on new home buyers and realtors as the sector was already passing through a tough time due to fall in property sales and non-availability of funds for developers.

“It will have a negative impact on the sector. Property buyers are already struggling with the increase in stamp duties,” said Abhishek Lodha, director of Lodha group.

Consultants said the move would be counter-productive for the government as it could dissuade home-buyers from purchasing homes. “The government is making an error by raising the charges. Higher duty will lower the revenues as it will make home buyers defer their purchases,” said Akshaya Kumar, chief executive of Park Lane Property Advisors.