State promises cut in official realty rates | india | Hindustan Times
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State promises cut in official realty rates

india Updated: Jan 21, 2009 14:58 IST
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With realty prices headed south, city developers met government officials on Tuesday and were assured that the rates in the recently released Ready Reckoner would be reduced.

Ready Reckoner rates indicate the official market value of property in different parts of the city.

The developers said that, just as the state increases Reckoner rates as market rates go up, they should also be dropped when rates fall.

They expressed concern that, if Reckoner rates were not revised, the state would assess property tax based on the higher realty values.

“Remember that reduction in Ready Reckoner rates will benefit the common man as it will reduce the overall purchase price and also help them save on property tax and capital gains tax (in case of sale of property),” said builder Niranjan Hiranandani.

On Tuesday, the builders met Revenue Minister Patangrao Kadam over their demands. Principal Secretary Ramesh Kumar said the government was mulling all proposals.

Builders have seen a dip in sales following the slump and resultant uncertainty in the job market.

Rajesh Vardhan, Managing Director, Vardhaman Constructions said the government should reduce the Reckoner rates to boost the market. “The state should concentrate on easing the economic burden of the consumers,” he said.

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