Town planning department (TPD), with an objective to enhance stamp duty collections, has proposed a massive hike of 10 to 30% in ready reckoner rates within and outside municipal limits of Nagpur. The four BJP MLAs of the city have lodged a protest with TPD deputy director in this regard.
Ready reckoner rates are used to calculate stamp duty on sale, mortgage, lease, etc of a property. They are usually lower than market rates. The rate hike may result in a huge increase in property tax too as state government has asked municipal corporations to assess this tax on basis of ready reckoner rates instead of annual letting value. A committee of Nagpur Municipal Corporation ( NMC) is doing a sample analysis of the proposed methodology.
MLA Devendra Fadnavis told media that TPD had claimed that the increase in ready reckoner rates in 2010 compared to 2009 was between 10 and 25% but in reality it was between 120 and 1,100%. "This has led to a situation where ready reckoner rates are higher than market rates. It is putting a huge burden on common man and dampening commercial activity. Now, a further hike of between 10 and 30% is proposed. Not only this is too high but we fear that the actual hike would be far higher," he said.
Vikas Kumbhare pointed out that the ready reckoner rates for land in mouza Lendra in 2009 was Rs 15,500 per square metre. It increased by 260% to Rs 40,000 per square metre this year. "This is ridiculous. The market price has not increased so much. There is a similar increase in rates for flats and shops in Lendra as well as other areas. In mouza Panjri (rural) the rate of agricultural land increased by 11 times in one year."
MLAs Sudhakar Deshmukh and Krishna Khopde demanded that as government had increased the rates too much in 2010 there was no need for a hike in 2011. "The rates should be increased only in the new growth centres outside municipal limits as there is a huge difference in ready reckoner rates and market price there," they said.
Ready reckoner rates are used to calculate stamp duty on sale, mortgage, lease, etc of a property. They are usually lower than market rates. The rate hike may result in a huge increase in property tax too as state government has asked municipal corporations to assess this tax on basis of ready reckoner rates instead of annual letting value. A committee of Nagpur Municipal Corporation ( NMC) is doing a sample analysis of the proposed methodology.
MLA Devendra Fadnavis told media that TPD had claimed that the increase in ready reckoner rates in 2010 compared to 2009 was between 10 and 25% but in reality it was between 120 and 1,100%. "This has led to a situation where ready reckoner rates are higher than market rates. It is putting a huge burden on common man and dampening commercial activity. Now, a further hike of between 10 and 30% is proposed. Not only this is too high but we fear that the actual hike would be far higher," he said.
Vikas Kumbhare pointed out that the ready reckoner rates for land in mouza Lendra in 2009 was Rs 15,500 per square metre. It increased by 260% to Rs 40,000 per square metre this year. "This is ridiculous. The market price has not increased so much. There is a similar increase in rates for flats and shops in Lendra as well as other areas. In mouza Panjri (rural) the rate of agricultural land increased by 11 times in one year."
MLAs Sudhakar Deshmukh and Krishna Khopde demanded that as government had increased the rates too much in 2010 there was no need for a hike in 2011. "The rates should be increased only in the new growth centres outside municipal limits as there is a huge difference in ready reckoner rates and market price there," they said.
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