The Confederation of Real Estate Developers’ Associations of India (CREDAI)-Pune Metro has called on the Maharashtra government to reduce stamp duty rates, citing that ready reckoner rates in many areas are higher than transaction market rates. The real estate body has been continuously pushing for a review of the issue with Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis.
The real estate industry body, CREDAI-Pune Metro, has urged the Maharashtra government to reduce stamp duty rates, which it says will benefit consumers, the industry, and the state government. The current stamp duty rate is 7%, which the organization says is unaffordable for middle-class homebuyers, who constitute 60% of the population. CREDAI-Pune Metro President Anil Pharande wrote a letter to Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis, and other officials concerned, emphasizing that a reduction in stamp duty rates would be a win-win situation for all stakeholders.
Pharande pointed out that reducing stamp duty rates would reduce the overall price of the unit, enabling consumers to pay lesser EMI and potentially reducing the term of their loan. For instance, CREDAI-Pune Metro Vice President Ranjit Naiknavare cited an example of a middle-class person buying a property in an urban area in the range of Rs 70-75 lakh. By reducing stamp duty rates by 3%, their EMI and interest would reduce, softening the financial burden on common homebuyers.
Naiknavare argued that reducing stamp duty rates would not affect the government revenue, citing past experiences amid the pandemic. The reduction of stamp duty would boost the real estate sector as more units would be sold, benefiting all three stakeholders. It would also help maintain stable economic growth.
CREDAI-Pune Metro has also called for a review of ready reckoner rates, which refer to the minimum rate based on which the government charges the registration fee. The organization believes that ready reckoner rates in many areas are higher than transaction market rates, causing a financial burden on homebuyers. By reviewing these rates, CREDAI-Pune Metro hopes to ease the burden on middle-class homebuyers and boost the real estate sector in Maharashtra.