Maharashtra Nod to Not Revise Capital Value of Buildings, Land in Mumbai

The State Cabinet of Maharashtra has decided to go against the proposal of revising building capital values. This is also applicable for pieces of land in Mumbai. This decision comes in the wake of the upcoming Brihanmumbai Municipal Corporation elections that are supposed to be held in the first part of 2022. The decision comes from the authorities amidst the conditions brought about by the pandemic. Therefore, all real estate transactions that would take place in the city will be based on the existing value of properties. This includes both land and buildings in Mumbai. Key real estate players in Mumbai should be aware of this development, as they had been expecting a revision in prices. With the original property value retained in the city, the transactions would take place on the basis of the current market value of land and buildings.

In this regard, real estate players should know that the capital value of property needs to be revised every five years. This is as per the adherence to the Brihanmumbai Municipal Corporation. Amidst the pandemic, the real estate industry has been struggling to recover from a crisis. Therefore, the authorities have decided not to revise the property value, which might increase after scrutiny.

The government declared in a press release that they have considered the situation, as the economy has been going through a crisis with lesser funds available in the hands of consumers. Besides, many small establishments have remained closed following the lockdowns. Factories, associations, industries, and schools have also been affected. Even daily wage earners are facing difficult financial times.

From the elected candidates, there were several representations at the Brihanmumbai Municipal Corporation. These senior groups had been seeking relaxation or waiving of the property tax. As a result, MBC is set to lose revenue of INR 1,042 crore. Considering these consequences, there might be an amendment in the MMC Act.