Maha's Debt Pressure May Lead to Over 5% Hike in RR Rates from April
Pune: The Maharashtra government is under mounting fiscal pressure due to a significant rise in the state's debt burden, which may compel it to revise the ready reckoner (RR) rates from April. According to senior government officials, an average increase of over 5% across the state is expected. The final announcement is scheduled for March 31.
"Considering the widening revenue deficit and the surge in supplementary demands, a revision in RR rates appears imminent," a senior state government source told TOI. District-wise consultations with stakeholders have been completed, but the final decision will depend on the funds required to support major infrastructure projects, welfare schemes, and other spending commitments announced by the government.
Last year, the state government increased RR rates by an average of 3.89% after keeping them unchanged for two consecutive years (2023-24 and 2024-25). In 2022-23, there was a 5% hike. For the current financial year, the property registration department has been set a revenue target of Rs 63,500 crore, up from the earlier Rs 60,000 crore. Officials noted that the department has already achieved around 85% of the target and is likely to meet or even exceed the revised goal.
The RR rates are determined after assessing property transactions in a particular area, and revisions are proposed based on these trends. In several pockets, especially in cities such as Pune, Mumbai, and Thane, transaction values are significantly higher than the existing RR rates. In some areas, market transactions are over 100% higher than the benchmark rates. Since this trend is observed in both rural and urban areas, a revision in rates has become necessary.
In March 2025, the state budget projected a revenue deficit of Rs 45,890 crore. This deficit rose sharply after supplementary demands of Rs 57,509.71 crore were presented in June 2025. With an additional Rs 75,286.37 crore sought during the winter session in December, the revenue deficit now stands at close to Rs 2 lakh crore. The budget has also projected the state's debt burden to rise to Rs 9.32 lakh crore. During the ongoing legislative session, Deputy Chief Minister Devendra Fadnavis presented supplementary demands worth Rs 11,995.33 crore.
Officials in the registration department emphasized the necessity of correcting the RR rates. "The registration department is among the highest revenue contributors to the state exchequer. In the current fiscal context, revision of rates is necessary," a senior official said. However, developers have urged the state government to maintain the RR rates this year. Members of the Confederation of Real Estate Developers' Associations of India (CREDAI) stated that the real estate market remains buoyant and stable, partly due to steady RR rates over two consecutive years.
"Since the government revised the rates last year, there is no need to increase them again this year," a senior CREDAI member told TOI. A national member of the CREDAI national governing council added that the state has been generating adequate revenue even without frequent revisions. "The government should ensure that the middle class is not affected. The market is currently stable and buoyant, and that should be considered before making any decision," a member said.
A fresh hike could affect property buyers and dampen market sentiment, he noted. Another CREDAI office bearer said the steady growth in property registrations shows that the sector is already contributing significantly to the state's revenue. "The state has been generating steady revenue from property registrations. There is no pressing need to increase the rates again. Another hike could impact the overall system," he said. The registration department achieved around 140% of its revenue target in 2022-23, followed by 100% last year, indicating strong activity in the property market.
