Mumbai, Apr 1 (IANS): Ahead of the auspicious Gudi Padwa, there is good news for the property buyers in Maharashtra as the state government has decided to maintain the status quo in the ready reckoner (RR) rate for fiscal 2024-25.

This means the RR rate, or the standard rate fixed by the state government for the value of land, residential or commercial, below which property transactions cannot take place, of 2023-24 will continue in place from April 1 till further changes. The RR rate is also the minimum value considered for paying the stamp duty to the state government

The RR rate was not changed in 2019-20, 2020-21, and 2021-22 but the state government had revised it in 2022-23. It remained unchanged in 2023-24

The government’s move came in the wake of the ongoing Lok Sabha election process and also after legislators of both ruling and opposition parties had opposed any hike in RR rates citing the realty sector, which was adversely affected by the coronavirus pandemic, is on the verge of recovery.

State Revenue Department's Deputy Secretary Satyanarayan Bajaj issued a notification on Sunday afternoon conveying the state government’s decision to the state's Inspector General of Registration and Controller of Stamps, as the new RR rate is applicable from April 1 every year. A copy of the notification is in the possession of IANS.

According to the Revenue Department, Maharashtra tops among other states in the higher recovery of stamp duty and registration fee, which is one of the key sources of the state’s own revenues.

In 2019-20, the state government had mobilised Rs 28,989 crore through stamp duty and registration fee, Rs 25,651 crore in 2020-21, Rs 35,171 crore in 2021-22, Rs 37,500 crore in 2022-23, and over Rs 50,000 crore in 2023-24 (as the final numbers are still out).

Anand Gupta, Vice President of the Builders Association of India said: "The government’s decision to maintain the status quo in RR rate is commensurate with the ground reality prevailing in the property market. At present, the realty sector is reasonably progressing at the rate of 10-15 per cent based on the property transactions. The status quo in RR rate will not have any adverse effect on the growth rate of property transactions as the growth will continue as happened in 2023-24."