The unnatural inflation in real estate value in its Ready Reckoner for 1999, designed solely at upping revenue collection via stamp duty, has remained more or less static in comparison to last year's figures. But by introducing new parameters to assess property value in its Ready Reckoner, the department has pushed up the rates for stamp duty for certain categories of flat owners.

Apart from the 15-25 per cent hike in values of property lined by main roads, the State has proposed a ten per cent addition to the price of property in the case of flats with facilities like marble flooring, granite platform, gildedtiles, children's park, swimming pool and a common dish antenna. With more and more builders providing for most of these facilities in their recent or the many upcoming projects in the extended suburbs, it is evident that the middle class will be severely hit.

Flats which have access to jogging tracks, intercom connections and air-conditioning facility will witness a 20 per cent rise in price, revealed sources. A building by the sea will also mean an automatic 20 per cent rise in price to be taxed, while a pent house will be liable for a ten per cent rise in price. The State has also proposed an addition of Rs 325 per square feet for flats above the fifth floor.

While the Deputy Inspector General of Registration B M Sheikh insists that Maharashtra has the ``lowest stamp duty rate, at eight per cent for residential premises'', he prefers to forget that the Ready Reckoner's `true market value' is truth stretched real far. For, notwithstanding a real estate market which is down by almost 50 per cent andignoring the Centre's directive to reduce stamp duty rates to three per cent; the State is all set to stamp out the real estate market in the city, rues Vivek Sthalekar of the Dahisar Flat Owner's Organisation (FOOD).

Pointing out that the rates in the Ready Reckoner, due for release shortly, in no way reflect true market value, FOOD and other estate agent groups are marshalling some potent ammunition to fight the department's high-handed attempt to fleece them. At a recent meeting, it was decided to pay stamp duty on the basis of the purchase agreement value, only from January 1, 1999. A massive dharna is also planned to coincide the release of the Reckoner at Azad Maidan and flat owners are demanding a special committee to be set up by the Government to review the Ready Reckoner.

``It is no secret,'' says advocate Vinod Sampat, ``that a proposed management school project at Navi Mumbai backed out due to the high stamp duty rates levied on it.'' But Sheikh dismisses all talk about the proposed hike andunreal rates as ``bogus''. ``We have undertaken a survey of the actual rates in the State through a local enquiry and shall come up with reasonable rates by January 1, 1999,'' he told The Indian Express.``We are the only State where you pay Rs 37,750 stamp duty on Rs 10 lakh, for residential premises,'' he stresses. But estate agents point out that the transactions in the city are the highest, as compared to elsewhere in the country. Besides they add, the amount involved in the transactions in the city is much higher. And with the State beefing up the rates further for purpose of taxation, it is little wonder that the stamp duty authorities were able to collect Rs 1,700 this year, observe real estate experts.

Citing an example of the unreal picture painted by the government, Sthalekar informs, ``The rates in Mira Road do not exceed Rs 800, but the Reckoner puts it at about Rs 1300 per square feet built-up area.'' In Colaba for instance, the Navy Nagar residential area is estimated at Rs 10,350 per squarefeet in the Reckoner, while market rates hover around Rs 9000. Commercial rates are still higher and are levied a ten per cent duty. Garages, car parks and godowns are all liable for stamp duty.

Meanwhile, in response to a Public Interest Petition (PIL) challenging the determination of the `true' market value, the Bombay High Court has asked the State to furnish an affidavit. The PIL was filed by the Maharashtra Chamber of Housing Industry, a few months ago. ``Nowhere in the Bombay Stamp Duty Act is the phrase `true market value' defined, though it is used extensively,''remarks Sampat.