CREDAI-MCHI requests GoM to slash stamp duty to 1% for 4 months

Also urges government to provide stimulus in terms of wages and directives to reduce costs and preserve jobs

Balasaheb Thorat, Revenue minister, Government of Maharashtra, Confederation of Real Estate Developers' Associations of India, MCHI, Reducing the stamp duty, CREDAI MCHI, CREDAI, Wages and directives, Preservation of jobs in MMR real estate, Migrant workers in MMR, Social distancing, Online registration, Ready Reckoner Land Rate Slum, Govt owned slum lands, Development agreement joint venture, Joint developments, Reconstruction of companies, NCLT orders, Nayan Shah

In a letter addressed to Balasaheb Thorat, revenue minister, government of Maharashtra, Confederation of Real Estate Developers' Associations of India, MCHI, made certain key recommendations including reducing the stamp duty to 1% for 4 months to provide a fillip to the sector and encourage home buying in MMR. CREDAI MCHI, during its recently organised webinar with the revenue minister, also strongly urged the government to announce measures to provide stimulus in the form of wages and directives to reduce costs, enabling preservation of jobs in MMR real estate. It strongly believes that the current outbreak will lead to extensive job and business loss and urges the government to strategically intervene to ensure the survival of the industry in MMR. Given the meagre situation of migrant workers in MMR, It hopes that the government undertakes substantial measures to protect the best interests of the laborers. A short-term shortage of workers is also bound to hugely impact MMR real estate.

CREDAI MCHI has provided adequate support to the migrant workers in the form of shelter and food at their sites, encouraging them to stay back in the region. It has also provided training on social distancing amid constant efforts to guide them in these difficult times. In order to limit the long-term implications of COVID – 19 on the industry, it further seeks the following steps from the authorities;

1. Stamp Duty should be reduced to 1% on all Real Estate transactions for next 4 months

2. In order to curb the gathering of people and ensuring social distancing, online registration should be given a priority

3. Ready Reckoner Land Rate Slum declared private land to be 25 % of land rate of open land as done in govt. owned slum lands. Currently valuation is on basis of 3-4 FSI and not reflective of actual market value

4. Stamp duty on development agreement joint venture joint developments etc needs to be reduced to 1% for next one year this will encourage developers come together and develop the lands.

5. Amalgamation, merger, demerger or reconstruction of companies, NCLT orders or court consent terms maximum stamp duty payable shall be Rs 10 lakhs, to allow companies to have a stronger balance sheet and take up projects.

Its president Nayan Shah shares, “The entire real estate fraternity is currently caught up in an unprecedented scenario which the economy has never witnessed before. In the midst of an economic disruption, Indian real estate has suffered extensively and needs critical intervention from the Maharashtra government for its survival. We also request the authorities to share a stimulus package to alleviate fears of job loss in the industry, with lacs of workers directly or indirectly dependent of the industry.”

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