Maharashtra’s stamp duty cut leads to 75% rise in home buying in Nagpur – ET RealEstate

NAGPUR: The stamp duty cut by state government has spurred realty transactions in the city. The move has halved the effective stamp duty rate levied on purchase of property to 3% in the city against 6% earlier.

The current rates are effective from September 1 to December 31, 2020. In September itself, there was a 75% increase in the number of sale deeds registered in the city compared to that in August. The data for October is yet to be complied but sources said that the trend was expected to continue.

Builders said there was a major jump in the mid to low priced housing segment, with many who had held up the buying quickly inking the deals.

The increase in registrations indicates the rise in property dealings. Stamp duty has to be paid along with registration and is levied over purchase of property.

As against 3,942 sale deeds registered in August, more than 6,500 were registered in September, a hike of 75%. The duty collection too has grown by over 13% in September over August figures. In September, Rs 40 crore was collected against Rs 35 crore in August, according to data shared by the registrar’s office here.

The collection, though, is still less than the monthly target. Due to the pandemic, the department has not been issued fresh targets for the fiscal. As it continues with the previous year’s targets, the achievement on monthly basis is lagging.

With yearly target of Rs 785 crore, the average monthly duty collection is expected to be in the range of Rs 65 to 60 crore. At Rs 40 crore, September collections are thus behind the target. This is due to the reduction in rate of duty, said officials.
Maharashtra's stamp duty cut leads to 75% rise in home buying in NagpurThe lockdown in March had brought down property transactions to negligible levels. Only eight deeds were registered in the month of April. In May, there was a jump and 841 documents were registered. In ,June it was over 3,900 and over 6,100 in July. It again fell to about 3,900 in August, the data revealed.

The total collection so far stands at over Rs 186 crore which is 23% of the target.

Builders said that the duty cut and other moves by the government had indeed spurred realty buying. Gaurav Agarwala, secretary of the Nagpur branch of Confederation of Real Estate Developers Association of India (CREDAI), said majority of the buying was happening in Rs 20 to 80 lakh segment. Apart from stamp duty, there are other factors too, he said.

“The interest rates on home loans are at a 20-year low at around 6.85%. Even developers are looking to sell properties at competitive rates. At present, persons with steady income like salaried class are looking to buy properties. Even the government subsidy on Pradhan Mantri Awas Yojana is available till March next year,” he said.

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Nagpur Improvement Trust to hold lottery for PMAY houses again – ET RealEstate

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NAGPUR: Civic agency Nagpur Improvement Trust (NIT) has decided to hold lottery for its tenements built under Pradhan Mantri Awas Yojana (PMAY) as many applicants could not get bank loan during Covid lockdown.

Addressing a press conference on Wednesday, NIT trustees Bhushan Shingane and Vijay Zalke said out of 4,479 PMAY tenements, only 1,200 had been allotted. “Many people could not get loans, so we want to give them another chance. These houses are located in Wathoda, Tarodi and Wanjri,” they said.

When pointed out that the very objective of the scheme was defeated if banks were not giving loans to poor for buying PMAY houses, the two BJP leaders said, “It is a central government scheme being executed by NIT. Banks are independent bodies. We can’t influence them.” “Banks should give loans to applicants as the house is the collateral,” said Zalke.

Other decisions taken in the board meeting include handing over four sewage treatment plants (STPs) in Jaitala area to Nagpur Municipal Corporation, allotting vacant pre-fabricated houses in Nandanvan to needy people, okaying NIT’s 12.5% share for upgrading Government Medical College and Hospital (GMCH) and All India Institute of Medical Sciences (AIIMS), maintenance of NIT gardens etc.

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One per cent of stamp duty allocated to Mumbai, Pune and Nagpur metros – ET RealEstate

MUMBAI: One per cent of all stamp duty levied on sale and purchase of property in Mumbai, Pune and Nagpur will go towards completion of metro projects in those cities, the government has announced.

The decision comes in the middle of a pandemic-induced slowdown, when all major infrastructure projects in the state are struggling to raise funds.

A notification issued by the Urban Development Department on September 10 said as per the Mumbai Municipal Corporation Act, 1888, and Maharashtra Municipal Corporation Act, 1949, 1per cent of the revenue will be collected by the Stamps and Registration Department and given for Mumbai, Pune and Nagpur metro rail projects. The additional charge will be applicable on all property deals from February 8, 2019, it said.

The government is studying different fundraising models for major infrastructure projects, a department official said. “The stamp duty levied on property will help the projects immediately. The emphasis will be on continuing the projects and completing them within the deadline.”

Mumbai Mirror had reported on September 4 that the Mumbai Metropolitan Region Development Authority (MMRDA) was struggling to raise funds for the metro project. If loans of Rs 29,000 crore do not come through in the next six months, the MMRDA may have to withdraw its fixed deposits of Rs 13,000 crore to fund big-ticket projects.

The planning agency has Rs 1.25 lakh crore tied up in 12 metro corridor projects, including around Rs 60,000 crore in seven under-construction lines and three that are in different stages of planning. Another key project is the Mumbai Trans Harbour Link, estimated to cost Rs 23,000 crore and likely to be completed by 2022.

All of these infrastructure projects are capital intensive. Sources said that on average, the annual expenditure on the projects as well as human resources and ancillaries touches around Rs 7,000 crore.

Pune Metro, which will connect Pune Central and the areas of Pimpri and Chinchwad, is targeted for operations by the next year. Its estimated cost is of Rs 11,420 crore. Nagpur Metro Rail Project will consist of a 38.215-km corridor, 38 stations and 2 depots. It is estimated to cost Rs 8,260 crore and is expected to be completed by 2021.

The stamp duty is the largest revenue earner for the government, after GST and sales tax and VAT. In 2019-20, the state earned Rs 29,500 crore through stamp duty. In 2020-21, it expects to raise only an additional Rs 500 crore.

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