Home Stamp collecting Maharashtra Government May Extend Builder Premium Reduction by 50% Until March 31 | Bombay News

Maharashtra Government May Extend Builder Premium Reduction by 50% Until March 31 | Bombay News

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MUMBAI: With agencies like Mhada, the Slum Rehabilitation Authority (SRA) and BMC raising record revenues in 2021, the state government could extend the 50% rebate for builders by a few months. The 50% discount program has already ended on December 31. A senior official said Urban Development (UD) is likely to reintroduce the program to the state cabinet and it could be extended for the current financial quarter until March 31, 2022.
The state government in January 2021 issued a government resolution (GR) reducing construction premiums paid by builders by 50% after the cabinet approved the proposal. According to the GR issued by the Department of Urban Development, builders must pay premiums based on the Ready Reckoner (RR) rates of 2019 or 2020, whichever is greater. Developers who choose to take advantage of the rebate will need to make a commitment with local organizations to pay the stamp duty in full and not to charge any stamp duty to homebuyers. The discount only applies to bonuses, not development costs and taxes, but applies to both current and new projects. The scheme was only valid until December 31, 2021.
“Bounty collection files of nearly 5,000 crore rupees are pending with various authorities in Mumbai. If the program is reinstated for three months, this income will be collected. This will not only generate income, but also help create a housing stock. All three parties – the Shiv Sena, Congress and the NCP – are on board, and the program is expected to be rolled out again for at least 3-4 months, “a cabinet minister told TOI.
As a result of this program, BMC this year received a record sum of nearly Rs 12,000 crore from builders in Mumbai rushing to take advantage of the 50% discount. Housing Minister Jitendra Awhad has previously urged Chief Minister (CM) Uddhav Thackeray and Deputy CM Ajit Pawar to extend the program. “Ask CM Uddhav Thackeray and DCM Ajit Pawar to extend the concession date as an additional 6 months. The concessions have helped the construction industry and the revenues of all municipal corporations, Mhada and SRA have increased. In the course of the process. normal, we couldn’t have gotten so much income, ”Awhad tweeted.
In September 2020, the Deepak Parekh committee for the real estate sector recommended a 50% reduction in the various premiums charged by BMC, including for the improved ISP, transfer of development rights, second stairs and additional issues such as loopholes. open spaces and the like. The committee recommended a 50% reduction in all these bonuses at all levels, not just for the city but for the state as a whole.