Credai appeals to the state government for keeping RR rates to be identical for the buyer interest.

The Confederation of Real Estate Development Association of India (Credai) has requested the state government to keep ready reckoner (RR) rates unchanged for the next financial year and the existing high rates in some regions.

The appeal comes even as local representative district meetings are on in the state for recommendations on RR rates. The state has kept the rates unchanged in the last two years.

Ready reckoner (RR) rates are the state government property value assessments on which stamp duty and registration fees are charged. Typically, at the beginning of the financial year on 1 April, the state revises these rates every year.

The president of the state of Credai Rajiv Parikh, told, “We requested a reduction of the rates in most parts of the states as lowering the rate automatically would inevitably attract buyers to register units. This allows the government to gain substantial revenue.”

Credai has asked the government once in three years to change the RR rates. The association looked for severe and accurate changes to RR book footnotes (directives), which are appropriate for the purpose of measuring stamp duty. Also, city planning officials say they received feedback from local authorities to be sent to the registry department.

Analyst for real estate Niranjan Kelshikar researched the state’s real estate sector, said that the rise in the RR rates would have an adverse effect on registration and revenue collection. “If a policy is aiming at increasing revenue, a small rise in stamp duty of around 1 per cent will result in a 10-15 per cent increase in revenue. Though, only after a thorough review should this be achieved,” he added.