Mumbai, May 26: In some relief measure to the real estate sector in Maharashtra, the state government on Tuesday didn’t change the circle rates for the current fiscal as the new rates could not be assessed due to the Covid-19 outbreak. Circle rate, also known as a ready reckoner, is basically the minimum price at which property gets registered at the time of its transfer.


Typically, the state government’s revenue department releases the stamp duty ready reckoner rate as per the market. The dates are revised on April 1 of every year that helps the registration department to generate maximum revenue for the state.

According to the circular by the government, the assessment of the annual statement rate (ASR) could not be carried out because of limited employee strength and the extended lockdown.

“As a result, the rates were kept unchanged for the period from April 1 till May 31, till further orders. However, since the assessment could not be completed within the timelines, it has been decided to keep the rates unchanged for the entire fiscal till further orders," the government said in a circular, as reported by news agency PTI.

The news comes as a time when the economy is grappling with the Covid-19 induced lockdown which has brought activities to a halt. In fact, real estate developers' associations are eyeing stimulus packages and cut in ready reckoner rates to support the sector which generated the second-largest employment.

Former chief minister Devendra Fadnavis had asked for 40 per cent reduction in ready reckoner rate.

Maharashtra chief minister Uddhav Thackeray had imposed partial lockdown in the state from March 18 to contain the spread of Covid-19.

The nationwide lockdown was later announced by Prime Minister Narendra Modi from March 25 which has now been extended till May 31.

As the lockdown restrictions have been lifted in particular areas to resume construction work, the migration of labours from the state has assumed a significant concern for developers.