State to micro-zone Mumbai to iron out flaw in RR rates | Mumbai news
MUMBAI: To correct a flaw in the ready reckoner (RR) rates, where slums, redeveloped slums and chawls have been paying on par with the plush high rises next door, the government has decided to embark on ‘micro zoning’ of areas in Mumbai. The decision was taken after the economic disparity in areas that stand cheek by jowl, particularly with the redevelopment overdrive in the city, came to the government’s notice.
Revenue minister Chandrashekhar Bawankule held a meeting with legislators from Mumbai and asked the department to go by micro zoning while deciding the RR rates. It was brought to the government’s notice that in certain areas like the Four Seasons hotel in Worli, and parts of Parel, Borivali, Malad and Malvani, where slums, chawls and smaller buildings have been replaced by high rises, the low-end flat owners were paying the same rates as high-end flats. The government was also apprised that smaller flats owners end up paying stamp duty that is disproportionately high to the actual purchase price of their houses.
“The town planning department ascertains RR rates based on the deals in the previous year, in particular CTS numbers in the city,” said an official from the revenue department. “Some of the CTS numbers that have gone under redevelopment rapidly have slums, chawls and smaller buildings on the one hand and fancy high rises on the other. The per-square-foot rate of the flats in high rises is almost double that of chawl tenements, SRA projects and smaller buildings, despite which they end up paying stamp duty at the same rate. This results in buyers of smaller flats paying stamp duty at rates much higher than their purchase price. They also get notices from the income-tax department, holding them responsible for under-declaring the value of the property.”
The issue was brought to the government’s notice during the budget session by MLAs, including Sachin Ahir and Anil Parab. “We will go in for micro zoning with the help of the geographic information system (GIS) for the scientific computation of RR rates,” said the officer. “It has also come to notice that many builders have been misusing the RR rates by paying development charges and premiums at the old rates even in flats redeveloped from slums and chawls, which naturally attract a higher rate. Micro zoning will help the government to fix such anomalies and plug the losses.”
The officer added that though the RR rates are revised annually, the revenue minister had asked the department to do the revision as soon as possible. “We may revise the rates in the next few months,” he said.
Real estate industry body CREDAI-MCHI is of the view that there should be a scientific and micro market-based approach to the RR rate revision, and that a one-size-fits-all increase does not reflect the actual market sentiment in many pockets of the Mumbai Metropolitan Region. Raajesh Prajapati, chairperson, PR & Communications, CREDAI-MCHI emphasised, “Real estate activity varies greatly across different regions and micro-markets within MMR. For example, areas with limited demand or underdeveloped infrastructure should not face the same RR rate hikes as high-demand zones. We urge the government to consider introducing dynamic, GIS-based RR mapping, which would enable more region-specific adjustments and provide targeted relief for redevelopment and slum rehabilitation projects. These are key to Mumbai’s housing future.”
Nikunj Sanghavi, managing director, Veena Developers, too was of the same view. “We believe that a balanced approach to RR rates is essential to ensure long-term affordability and sustained growth in the housing sector,” he said. “CREDAI-MCHI is committed to working with the government to find solutions that balance the needs of all stakeholders and help keep Mumbai’s real estate sector on a growth trajectory.”
