The Maharashtra Cabinet on Wednesday cleared a proposal to cut real estate premiums by 50% till December 31, 2021, for all ongoing and new projects.
Countering Leader of Opposition Devendra Fadnavis’s allegation that the move would benefit select developers, the Cabinet said builders will have to pay premiums based on the Ready Reckoner rates of 2019 and 2020, whichever is higher.
To ensure transfer of benefits to customers, developers who opt for the 50% cut in premiums will have to pay stamp duty on behalf of homebuyers.
The move is based on the report of a State-appointed committee headed by HDFC chairman Deepak Parekh, which recommended slashing premiums to revive the real estate sector hit by the COVID-19 pandemic.
In the previous Cabinet meeting, Congress ministers sought more time to study the proposal, while ministers from the Nationalist Congress Party and the Shiv Sena backed the move. On Wednesday, the Congress accepted the proposal after Chief Minister Uddhav Thackeray reached out to the party.
BJP MLA Ashish Shelar asked if the sops extended to builders will reach customers. “There is no clarity if this move will reduce home prices. We as a party will continue questioning the government,” he said.
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