High-value property registrations, followed by increased ready reckoner rates and stamp duty charges, have helped the state property registration department achieve 78% of its annual revenue target by the end of November.

PUNE: High-value property registrations, followed by increased ready reckoner rates and stamp duty charges, have helped the state property registration department achieve 78% of its annual revenue target by the end of November.

Data shared by the registration department on Wednesday shows that as of November 28, the state had collected Rs24,987 crore, as against its 2022 revenue target of Rs 32,000 crore.

However, representatives from developers' bodies like the National Real Estate Development Council (Nardeco) and Confederation of Real Estate Developers' Association of India (Credai) stated that registrations and revenue could have increased further if the stamp duty charges were reduced. In October, Chief Minister Eknath Shinde had assured developers' bodies of assessing the stamp duty charges on property registrations. However, the state is yet to take a final decision.

A month later, when deputy chief minister Devendra Fadnavis was asked if the government was considering the same, in a reply to a message from TOI he said nothing is decided yet, adding, "We may check on it soon."

A senior government source confirmed, "Nothing has been decided yet. However, if the CM has announced it, the same is under consideration and will be discussed before releasing a proposal."

A source from the CM's Office, on condition of anonymity, added, "We are evaluating all aspects and a decision will be taken only after discussions and a thorough study."

Following the imposition of the metro cess, stamp duty on property registration in Pune, Mumbai, and Nagpur had increased by 1%. In Mumbai, stamp duty is now 6%, while it is 7% in Pune, Nagpur, and Thane. Pune and Mumbai are some of the country's most expensive and largest real estate markets. The CM had asked real estate developers to send in detailed suggestions with respect to lower stamp duty. With the reversal in the interest rate cycle, concerns over its likely impact on slow demand patterns have started to worry developers, who are seeking government intervention.

Commenting on the scenario, Abhay Kele, secretary of the Nardeco Pune chapter, said, "We have offered that if the state government reduces stamp duty charges by 50%, our members are willing to bear the balance stamp duty charges. This will facilitate higher purchases. It will trigger sales as well as collect good revenue." There are around 3,600 Nardeco builders in the state. In 2020, Nardeco builders had offered the same scheme to beneficiaries when the previous government announced sops and lowered stamp duty.

Credai state president Sunil Furde also said, "We had been demanding a reduction in stamp duty from the previous government and have now also put up our representation with the present government. The move will boost sales in metros and smaller towns."

The previous state government had announced a reduction in stamp duty charges to 2% from 5% from September 2020 till the end of December 2020. Stamp duty was charged at 3% of the agreement value between January 2021 and March 31, 2021. The limited-period stamp duty reduction window was a catalyst for the state's residential market. While stamp duty rebates are not available now, the deals have not been affected, said market experts.

Interestingly, the state government's revenue collection through stamp duty charges has recorded its all-time high so far in 2022, with the registration department achieving 78% of revenue for the financial year as of November 28.

The implementation of an additional 1% metro cess, combined with the price increase and the sale of larger projects, resulted in revenue collection totaling Rs24,987.25 crore for around 16,57,258 registrations from January till November 28.

Source: realty.economictimes.indiatimes.com

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