In order to bring uniformity in the property taxes levied in the suburbs and in south Mumbai, The Brihan Mumbai Municipal Corporation had introduced a new tax system from rateable to capital value in 2010 based on the built-up area, but was strongly opposed by all sections of the society, especially the residents of south Mumbai who enjoyed the ready-reckoner benefits but were paying property taxes on the basis of prevalent meagre rents. The residents of the suburbs of Mumbai were, however, paying higher property taxes.
The BMC is finding it increasingly difficult to refund a whopping Rs. 1,300-crore in property tax to those tax payers who paid their taxes during 2010-2014; the civic body has decided to tweak the existing tax formula to evade reimbursement to the affected.
Including the built-up area in the capital value-based property tax formula was opposed by the BMC’s corporators across party lines then. Citizens had also challenged this in the Bombay High Court. While the HC had asked the BMC to calculate the property tax on the carpet area till a decision is arrived at, citizens were given a choice whether to pay according to the controversial formula or the interim formula. Although most people paid as per the new formula, if the BMC continues accepting tax payments based on the interim formula, it would have to incur losses to the tune of Rs. 1200 – 1300 crore.
Further, in 2015, the BMC came up with a new formula by adding the factor ‘1.2’ in the calculation. The Standing Committee as well as the High Court demanded to know the basis of the formula and its legal validity. The civic body then sought the advice of Attorney General.
Finally when the Attorney General has given its opinion, the BMC has tabled the proposal where it tweaked the property tax formula in the name of revenue neutrality and will now charge 20% added tax from citizens.

Penthouse south Mumbai

One more record deal Indian realty market, in which one of the most prominent Indian industrialists is set to buy sea-facing triplex penthouse in South Mumbai at Napean Sea Road locality at record Rs 202 crore, the biggest deal for residential apartment in country.

We all know that this is another surprising deal in Indian real estate sector. It was four times bigger transaction in comparison of recent big-ticket transaction for an apartment, in which Banker Uday Kotak bought house of 11,000-sq-ft area in Rs 55 crore at commercial business district, which is located in the district of Bandra-Kurla Complex. From past two years Mumbai is witnessing big deals in luxury apartments as uber rich guys are not hesitating to pay even with Rs 100 crore prices in localities such as; Malabar Hill, Napean Sea Road and Worli.

Key Points of deal:

1. Deal Price: Rs 202 crore
2. Location: Napean Sea Road, South Mumbai
3. Developer: Runwal Group
4. Built Area: 17,000 sq ft over 20th, 21st and 22nd floors with parking slots for 21 cars
5. Expected Delivery Date: End of March 2018

About Deal:

With this deal it’s clear that in Indian real estate market any record cannot stand for much longer time because this deal is set to make a new record with its sea-facing triplex penthouse, which is located at Napean Sea Road locality in South Mumbai. One of the prominent industrialists is buying this luxury pad, which have carpet area of 17,000 sq ft, spread over 20th, 21st and 22nd floors of a project with 21 car-parking slots. This sea-facing triplex penthouse will be built buy the Runwal Group. However; this penthouse will offer the mesmerizing view of the Arabian Sea and the Queen’s Necklace. Apart from other facilities and amenities property will provide luxury club house and swimming pool with an aim to attract the international investors or buyer for its 30 apartments, which is being constructed in two separate wings.

According to one of the real estate expert, “This is great news because people are also moving towards the alternatives and other vertical developments. Now day’s families are looking for specific kind of lifestyle for which options are limited”. It is expected that this penthouse will be ready for possession by the end of March 2018, and industrialist has already made deal though the token payment and has signed agreement last week. It is expected that this deal will be concluded in next one month. If this deal will work out, so it will be one of the most expensive transactions for any residential apartment as per sq ft basis because buyer is paying Rs 1.20 lakh per sq ft. However; it’s not clear that who is buyer, but according to reliable sources, buyer runs a large and prominent group of diversified business with interest in a wide range of business sectors. Whereas; Sandeep Runwal, director of Runwal Group declined by commenting on the deal.

About Project:

Each floor of both the wings has one apartment and it is expected that by the end of March 2018, the project will be ready for possession. The well known Runwal Group is developing the project on the largest plot after bringing down a bungalow named as Napean Grange. In 2011, the developer was bought the bungalow in Rs 350 crore, which was spread on an area of half acre and the owner of the bungalow was Kapadia family. Earlier, the bungalow was famous as Bansda Residence, and family of Maharaja of Bansda (Bansda is state in southern Gujarat) were using it.