This State Removes 50% Govt Charges For All Real Estate Projects: Big Boost For Home Buyers, Real Estate Sector

One of the biggest states in India has now announced that the proposal to cut the premium on real estate projects has been approved.

The state government recently reduced stamp duties and both these changes have been made in order to boost the sale of residential properties.

Read on to find out all the details!

Govt. Of Maharashtra Decides To Cut Premium In Half To Push Residential Sales

The Government of Maharashtra has approved the proposal to cut the premium on real estate projects by half in an attempt to push residential sales. However, this move has an expiry date – December 31, 2021.

As per reports, the developers who are interested in availing of the scheme will be required to pay full stamp duty and registration charges on behalf of the homebuyers. 

A cabinet meeting was held by Chief Minister Uddhav Thackeray, wherein it was decided that the urban development department will grant a premium concession to construction projects. Also, projects will have to pay stamp duty in full to the customers.

50% Discount To be Given On All Various Premiums Levied By Government

Additionally, a 50% discount will be given on all the various premiums that the government levies on construction projects till December 31, 2021. This also includes the concessions in the premiums levied by all planning authorities/local administrations at their level. As per reports, this was recommended by the Deepak Parekh Committee.

To ensure that an undue benefit is avoided of this concession to one particular group or project, the concession that will be considered will be applicable for premium rates, whichever is higher, April 1, 2020, or the current annual market price table.

As per the committee, as of date, about 22 premiums were collected in Mumbai under various heads, such as FSI, staircases, lift well, lobbies, etc. This is comparatively quite high than other top cities of India. In Bengaluru, developers have to pay 10 different premiums and charges, and developers in Delhi are required to pay only five, and those in Hyderabad are pay only 3!

The decision by the government has been well received by the real estate sector.