Ready Reckoner Guidelines-Mumbai 2016-17

It is necessary to take into consideration the following factors while valuing tenanted properties.

(a) To ascertain the extent of total construction on all floors of the property i.e. the permissible construction area as per rules.

(b) To calculate the total area in the possession of tenants.

(c) To calculate the total monthly rent payable by the tenants.

(d) To ascertain the nature, area, age etc. of the constructed property in the possession of the landlord, apart from the tenant occupied constructed area.

Suppose:- 1] Total Area of Plot          =   X Sq.mtrs.

2] Total Permissible Floor Space Index (FSI) =     Y

3] Total permissible construction area on  the property                                                 = X x Y Sq.mtrs.

4] Total area of the property occupied by  the tenants                                                     = N Sq.mtrs.

5] Built-up area of the property  in the possession of the landlord                                              =    H

6] Total monthly rent payable by the tenants   = B Rs/-

Example 1:- If the total area occupied by the tenants exceeds the total permissible construction area on that property as per the rules, that is to say, if ‘N’ area is more than the X x Y area, then the value of the property should be calculated as follows:-

   Valuation in Municipal Corporation Area= 16x7xB= Rs.112xB or 25% value of the original permissible floor area of the land in terms of the rate of land, whichever is more.

Example 2:- If the total area occupied by the tenants is less than the total permissible construction area on that property as per the rules, that is to say, if ‘N’ area is less than X x Y area, then the value of the property should be calculated as follows:-

= 112B + {[(X x Y)-N-H] x (Rate of land as per the Annual Statement of Rates)} + (H x Rate of Sale for the concerned user after deduction of depreciation) or 40% value of the original permissible floor area of the land in terms of the rate of land, whichever is more.

Note:- 1] While determining the value of the old tenanted buildings in Mumbai City and suburbs as well as the cessed properties in Mumbai City, it will be mandatory to obtain the Certificate of the concerned Competent Authority e.g. Municipal Corporation/Special Planning Authority etc. or the Certificate of their registered Architect/Engineer regarding the total permissible Floor space area. If such certificate is presented, the permissible total Floor Space Index in terms thereof should be taken into consideration. If the certificate is not presented, for a cessed building minimum 3.00 FSI as per Rule 33(7) and for a tenanted building in suburbs minimum 1.40 FSI should be taken into consideration.

         If such Certificate is not presented for the valuation of original permissible floor area of the land, minimum 1.33 FSI for Mumbai City and minimum 1.00 FSI for the suburbs should be taken into consideration.

2] If a tenanted old building is redeveloped under a Development Agreement, detailed valuation should be done in the Adjudication as per section 31 of the Maharashtra Stamp Act, 1958.

2.1] Valuation to be done where tenant from the old building is allotted accommodation in the new building:-

     (a) where tenants are allotted accommodation in the new building, of a minimum 37.665 Sq.m (405 Sq.ft) carpet area inclusive of 35% fungible FSI after considering the residential area occupied by the tenants in the old building, stamp duty should be charged for the new accommodation on the basis of the amount which is 112 times the rent simplicitor as applicable to the tenants.

       (b) where tenant is allotted accommodation in the new building on the same plot after considering the residential area occupied by him in the old building, which is equal to the area earlier occupied by him, but exceeds 37.665 sq.m (405 sq.ft) carpet area, subject to the ceiling of 94.50 sq.mt (1017.19 sq.ft) carpet area, in such case the remaining area other than the carpet area of 37.665 sq.mt (405 sq.ft) in terms of clause 2(a) should be valued after taking into consideration the new rate of construction as per the applicable classification and such value should be added to the amount equal to 112 times the rent arrived at as per the valuation done under Sr.No. 2(a) above.

       (c) where a tenant who is being allotted accommodation in the new building on the same plot after considering the residential area occupied by him in the old building, subject to the aforesaid norm of 37.665 sq.m (405 sq.ft) and maximum 94.50 sq.m (1017.19 sq.ft) carpet area, desires to buy additional area apart from the area due to him, or if he is being allotted such area, then the valuation of the permissible area given to the tenant should be carried out as per Rule nos. 2(a) and (b) above and the surplus area valued as per the rates of the Annual Statement of Rates (residential) should be added thereto.

       (d) where tenant is allotted accommodation in the new building, of a minimum 33.48 sq.m (360 sq.ft) carpet area inclusive of 20% fungible FSI, after considering the commercial area occupied by him in the old building, stamp duty should be charged for the new premises on the basis of the amount which is equal to 112 times the rent simplicitor as applicable to the tenants.

     (e) where a tenant is allotted premises in the new building on the same plot after taking into account the commercial area occupied by him in the old building, which exceeds 33.48 sq.m (360 sq.ft) carpet area, but is equal to area earlier occupied by him, subject to the ceiling of 84.00 sq.m (903 sq.ft) carpet area, in such case the remaining area other than the carpet area of 33.48 sq.m (360 sq.ft) in terms of 2(d) should be valued after taking into consideration the new rate of construction as per the applicable classification and such value should be added to the amount which is equal to 112 times the rent arrived at as per the valuation done under Sr.No. 2(d) above.

     (f) where a tenant who is being allotted premises in the new building on the same plot after taking into consideration the commercial area occupied by him in the old building subject to the aforesaid norm of 33.48 sq.m (360 sq.ft) carpet area and maximum 84 sq.m (903 sq.ft) carpet area, desires to buy additional area apart from the area due to him or if he is being allotted such area, then the valuation of the permissible area to be given to the tenant should be carried out as per Rule Nos. 2(d) and (e) above and the surplus area valued as per the applicable flat/shop/office/industrial rate as given in the Annual Statement of Rates, should be added thereto.

2.2] If a tenant is buying a tenant occupied property, then in such case 40% valuation of the occupied area as per the market rate should be taken into consideration. If the tenant is buying additional area of the landlord other than tenant occupied area, then such area should be valued as per the permissible Floor Space Index and on the amount so worked out stamp duty should be levied.

2.3] Valuation to be carried out in the case of allotment of premises to the members in the new building under a re-development project of an old building belonging to a co-operative housing society:-

If a Development Agreement is executed between a housing society (original owner) and the Developer in furtherance of the re-development project of a co-operative housing society, the consequential Instrument executed for the benefit of the co-operative society pursuant to the said agreement should be levied with a stamp duty under section 4 of the Maharashtra Stamp Act.

   However, if the Development Agreement is executed only between the housing society and the developer, the Instrument effecting transfer of flat/premises for the individual benefit of the original member of the housing society, cannot be treated as the consequential Instrument in furtherance of the original Development Agreement, since it is a separate Instrument. Hence, as regards a flat/premises transferred under such Instrument, stamp duty should be levied vis-à-vis the area approved by the housing society on the basis of the construction cost. If additional area is being acquired individually, it should be levied with a stamp duty as per the rates under the Annual Statement of Rates (flat/shop premises/office/industrial).

            Notes for Guideline Nos. 1 and 2:-

(a) The above referred Guideline Nos. 1 and 2 apply only to a tenant and the area occupied by him, who is treated as a tenant within the meaning of the repealed Bombay Rent Control Act, 1947 and section 7(15)(c) of the Maharashtra Rent Control Act, 1999. While seeking the above referred exemption, the concerned parties must furnish proofs regarding the occupation of such tenant in the building since March 30, 2000 or about the occupation of a person for the last 5 years in tenanted capacity, where he has acquired such tenanted rights under a duly registered Deed thereafter. e.g. Property Tax extract of the Municipal Corporation regarding the name of the tenant, Electricity Bill in the name of the tenant, Telephone Bill, Rent Receipts, Ration Card, Trade Licence issued by the Municipal Corporation, entry in the Voter’s List for the year 1995. Such exemption can be granted only if minimum three such proofs or any three proofs as mentioned in the G.R No. Loka.Aa.2007/Pra.kra.120(a)/Du.va.pu-1, dt. 16/08/2010 issued by the Housing Department of the Government are furnished. When the instrument is presented for registration, the detailed particulars about the area in the occupation of the tenants and the rent to be charged should be mentioned in the instrument and such instrument along with proofs should be lodged in the office of the Sub-Registrar, minimum eight days in advance. All the above referred proofs shall form a part of the documents accompanying the original instrument. Sub-Registrars should register such instruments only when they verify a person as a tenant from the documents furnished as proof. The rights flowing from the instrument of Leave & Licence shall not be eligible for such exemption.

(b) While determining the permissible construction area on such property, it is also necessary to take into consideration the Incentive FSI permissible under the Development Control Regulations.

Valuation of the plot having capacity for TDR consumption:-

While valuing a plot situated in a Mumbai suburb having capacity for the consumption of Transferrable Development Rights (TDR), the rate of land as mentioned in the Annual Statement of Rates (as per 1.00 Floor Space Index) should be increased by 40% and the rate so worked out should be taken into consideration for the valuation. After carrying out the addition as aforesaid, it will not be necessary to consider the TDR consumption capacity separately again. Those instruments e.g. cessed building, educational building, starred category hotel, MHADA, slum re-development project etc., which are elaborately valued after taking into consideration the incentive/additional floor space area (permissible floor space area contemplates the total TDR capacity of that plot) available for the property as mentioned in the instrument, the question of making 40% addition as stated in this guideline would not arise.    

Depreciation:- The valuation rate of an old building to be taken into consideration after deduction of depreciation as per its age should be calculated as follows:-

Calculation—

1] Valuation Rate of a residential building/office/occupational unit/shop under the Annual Statement of Rates after allowing permissible increase/deduction as per other Guidelines:- (a)

2] Valuation Rate of an vacant land as per the Annual Statement of Rates:- (b)

3] Difference between the rate of land and the built-up structure:- (c)= (a-b)

4] Percentage as per the Annual Statement of Rates:- (d)

5] Valuation rate to be taken into consideration after deduction of depreciation:- (b) + (c x d)  

Note:-

1] Where Occupation Certificate from the Municipal Corporation is not available for determining the depreciation, other proof e.g. Acknowledgment copy of the application made to the Municipal Corporation for issue of occupation certificate, certificate about payment of municipal taxes or other proof about completion/possession of building such as Electricity Bill, Telephone Bill and society certificate, of these one proof should be taken into consideration. If the said building is re-developed, in-depth verification should be made about the other proof.

2] If the Statement of Rates does not prescribe separate rates for a built-up residential building/office/occupational unit/shop/industrial building, such property should be valued as per Guideline No. 7.

3] As regards a simplicitor land, the value of land should be calculated as per Guideline No. 17.  

The rates stated in the Annual Statement of Rates pertain to the built-up area. If the instrument mentions carpet area, it should be valued after calculating the built-up area as follows. However, if the instrument contains any other reference about the built-up area other than carpet area, valuation should be carried out on the basis of the area mentioned in the instrument. However, for Open Parking and Terrace, only the stated area should be taken into consideration.

Built-up Area= 1.2 x Carpet Area

OR

Carpet Area= Built-up Area/1.2

Row-House/Penthouse/Duplex/Bungalow/Flat under a Group Housing Project or Row-House/Bungalow/Commercial/Industrial User buildings on a separate plot:-

(a)(i) only a residential Flat under Group Housing Project should be valued on the basis of the rate of value assigned to a residential flat in the concerned valuation zone of the Annual Statement of Rates.

   (ii) while valuing a Row-House/Penthouse/Duplex/Bungalow constructed on a plot in Mumbai City and Suburban District area under a Group Housing Project with the construction area thereof exceeding 120 sq.mt, 25% additional rate over the rate assigned to a residential flat in the concerned Zone should be taken into consideration. However, if the said Row-House/Penthouse/Duplex/Bungalow do not have any RCC slab and if the construction is of any other pucca or half-pucca type, the said property should be valued by taking into consideration only 10% additional rate over the rate of a residential flat.

   (iii) a Row-House/Penthouse/Duplex/Bungalow with area less than 120 sq.mt. constructed in Mumbai City and Suburban District area under a Group Housing Project should be valued at the rate of a residential flat in the concerned Zone.

   (iv) in case of Row-House/Bungalow/Commercial/Industrial User Buildings constructed by any other co-operative housing society or on a plot having independent sanctioned Layout or on a separate plot otherwise than under a Group Housing Project, if no rate of value is prescribed, such property should be valued as per Guideline No. 7. However, if rate of value is prescribed, the value of the construction area under such user should be calculated at the rate assigned to a flat/office/shop/industrial unit under the Annual Statement of Rates and the value of the balance floor space area (total permissible construction area – existing construction area) calculated at the rate of land should be included therein and the aggregate value so arrived at should be taken into consideration.

(v) Any user other than the residential user encompassed in a Group Housing Project/Building on an independent plot, such as shop premises/office/occupational/commercial unit and any other user on the ground floor should be valued at the rate assigned under the Annual Statement of Rates to a shop/occupational unit situated on the ground floor.

(b) In case of a larger residential project comprising 2 to 10 hectares in Mumbai City and Suburban District area, if no separate valuation zone is prescribed for such housing project in the Annual Statement of Rates, 105% rate of the flat/shop/office situated in the valuation zone where such project is located, should be taken into consideration and in case of a project exceeding 10 hectares area, 110% rate of the flat/shop/office of such valuation zone should be taken into consideration. While valuing a Row-House/Penthouse/Duplex/Bungalow in the said project with an area exceeding 120 Sq.mt, 20% and 15% additional rates over the rates of flats as enhanced hereinbefore should be adopted respectively. For the valuation of a Row-House/Penthouse/Duplex/Bungalow in the said project with an area less than 120 Sq.mt., 105% and 110% of the rates prescribed for the flats in the concerned valuation zone, subject to the area limits of the project stated above should be adopted.

(c) An extra-special bungalow/building, comprising helipad, gymnasium, swimming pool, double height for some floors and any other state-of-the art amenities, should be valued at double the rate prescribed for a bungalow in the concerned valuation zone or if no such rate is prescribed, double the rate as worked out under Guideline No. 7 or double the rate prescribed for the sale of a flat in the concerned valuation zone, whichever being higher, should be adopted as the basis of valuation.

Valuation of properties for various users, where Statement of Rates does not prescribe separate rates:-

Residential property, office on the upper floor/occupational units & shops on the ground floor/occupational and industrial user properties should be valued on the basis of concerned land rates and new rates of construction as per construction classification (Appendix-B) as follows.

(i) Residential Property:-

   (a) Residential building/bungalow on an independent plot= value of land + value of construction as per depreciation

   (b) Residential Flat= (Rate of land + Rate of construction as per depreciation) x 1.15 x Area of Flat

Guideline at Sr.No.5 above shall apply to the area of a flat. In the context of the floor where a flat is situated, the following Guidelines at Sr. Nos. 18 and 19 shall apply.

(ii) Commercial Property:-

   (a) Commercial building on an independent plot= (Area of land x Rate of land) + (Construction Area x Rate of construction as per depreciation) x 1.5

   (b) Shop Premises/occupational/commercial premises/offices or building on the ground floor= (Rate of land + Rate of construction as per depreciation) x 1.50 x Area of the premises

   (c) Occupational units/offices etc. on the upper floors other than ground floor = (Rate of land + Rate of construction as per depreciation) x 1.25 x Area of the premises.

(iii) Industrial Property:-

   (a) Industrial building on an independent plot = value of land + value of construction as per depreciation.

   (b) Industrial premises = (Rate of land + Rate of construction as per depreciation) x 1.20 x Area of the premises.

(iv) Valuation of any user property situated in a No-Development Zone:-

Value of Property = Value of land as per Guideline No. 17(c) + Value of construction as per depreciation.    

Valuation of dispensary, Bank, Warehouse, registered Information Technology (IT)/Information Technology Enabled Services (ITES) Units in the Information Technology Park, Schools and religious building:-

(a) Valuation of a warehouse, private dispensaries and banks on the ground floor facing a road should be done at the rate assigned to shops in the concerned valuation zone of the Annual Statement of Rates and if they are not facing any road, the valuation should be done at 80% the rate assigned to shops. For both these valuations, deduction as per the area under Guideline No. 9(c) shall be permissible.

(b) A dispensary/hospital/bank situated on the upper floors should be valued as per clauses (c) and (d) of Guideline No.9.

(c) Registered Information Technology/Information Technology Enabled Services Units in an Information Technology Park should be valued at industrial rates instead of commercial rates as assigned in the Annual Statement of Rates. If industrial rate is not assigned, such unit should be valued at 110% the rate applicable to a residential building/flat.

(d) If the Annual Statement of Rates prescribes a rate for residential building, nursery schools (Balwadi), primary schools, intermediate schools and religious buildings should be valued by calculating the value of the construction area at the rate assigned to a residential building in the concerned valuation zone of the Annual Statement of Rates and the value of the balance floor space area (Total permissible construction area – existing construction area) should be calculated at the land rate and the value so worked out should be included therein and stamp duty should be levied on the aggregate value. However, if such rate of value is not assigned, valuation should be carried out as per Guideline No. 7(i)(a).

         If The Annual Statement of Rates prescribes a rate for the occupational unit/office on the upper floors, all colleges (engineering/medical/management etc.) should be valued by calculating the value of the construction area at the rate assigned to an occupational unit/office on the upper floors in the concerned valuation zone and the value of balance floor space area (Total permissible construction area – existing construction area) should be calculated at the land rate and the value so worked out should be included therein and stamp duty should be levied on the aggregate value. However, if such rate of value is not assigned, valuation should be carried out as per Guideline No. 7(ii)(c).

(a) Shops facing roads:- To be valued at the rate assigned to shops in the Annual Statement of Rates.

(b) Shops not facing roads:- To be valued at 80% the rate assigned to shops in the Annual Statement of Rates. However, the rate so worked out shall not be less than the rates applicable to offices/occupational premises on the upper floors. This exemption shall be permissible only in regard to the shop premises on the ground floor/lower ground floor/upper ground floor not facing roads. The concerned Sub-Registrar shall inspect the building plan of the building mentioned in the instrument to ascertain whether the shop premises face road or not and a copy of the sanctioned plan should be annexed to the instrument as a part thereof.

(c) Shops/offices with built-up area exceeding 450 sq.mt:- While valuing shops/offices with the built-up area exceeding 450 sq.mt., deduction over the rates assigned to shops/offices in the concerned valuation zone of the Annual Statement of Rates should be granted as set out herein below.

Note:- 1] For shops with larger area not facing the roads, this deduction shall be permissible over the rate worked out after taking into consideration Guideline No. 9(b). However, this deduction shall not be permissible for an office of larger area not facing any road.

2] While carrying out valuation as above, instead of slab-wise valuation, the contextual deduction as applicable to that area should be taken into consideration.

(d) Valuation of shops in the buildings comprising larger shopping complex other than Malls:-

Note:- 1] If the rate as worked out above is less than the rate applicable to an office/occupational premises on the upper floor, the rate of office/occupational premises should be taken into consideration.

2] For a shop in the aforesaid complex not facing road, the said deduction shall be permissible after taking into consideration the rate as per Guideline No. 9(b).

If no separate valuation zone/rate is prescribed for such building, the valuation of the shopping area premises/shops shall be determined as follows:-

Note:-This Guideline should not be taken into consideration, if a separate valuation zone is prescribed in the Annual Statement of Rates for Malls/Departmental Stores. In order to verify whether the premises/shops mentioned in the Instrument are situated in a Mall/Departmental Store, it shall be necessary to enclose a copy of the building plan sanctioned by the Municipal Corporation with the instrument. If the rate so worked out is less than the rate applicable to an office/occupational premises on the upper floors in the concerned valuation zone of the Annual Statement of Rates, the rate applicable to an office/occupational premises should be taken into consideration. The rate so worked out shall not be eligible for deduction as per the aforesaid Guideline No. 9(b).

Shops on the lower ground floor in a building comprising mixed users like Commercial/Residential, Public-Semi-Public/Commercial/Residential & Industrial/Commercial (except a larger Shopping Complex/Mall):-

A shop on the lower ground floor should be valued at 80% the rate applicable to a shop in the concerned zone. A shop on the upper ground floor should be valued like a ground floor shop by taking into consideration the 100% rate applicable to a shop in the concerned valuation zone of the Annual Statement of Rates.

If the basement is used for a shop/warehouse/storage apart from parking, it should be valued at 70% the rate applicable to a shop in the concerned valuation zone.

A mezzanine floor should be valued at 70% the rate applicable to the respective floor for the concerned user as specified in the Annual Statement of Rates. However, the area of a loft should not be taken into consideration for valuation.

The space surrounding the ground floor of a building:-

If the rights of land abutting a flat/office/shop shown in the sanctioned building plan are assigned for parking or otherwise, such land should be valued at 40% the rate applicable to the land in the concerned valuation zone of the Annual Statement of Rates.  

(a) Terrace attached to a built-up property (flat/office/shop/industrial) excluding a bungalow on the independent plot, should be valued by taking into consideration the 40% rate applicable to the concerned user in the Annual Statement of Rates. If the terrace on the upper floor of a flat is sold along with the flat, such terrace should be valued at 25% the rate applicable to the flat as per the Annual Statement of Rates. However, a terrace on the upper floor of an office/shop should be valued at 40% the rate applicable to an office/shop as per the Annual Statement of Rates.

(b) If there is an Instrument effecting transfer/sale of the construction rights on the terrace of a bungalow on an independent plot, the value of the said terrace area should be determined by calculating its value at the land rate and including therein the construction cost, at 15% the new rate of construction.

If any built-up property (flat/office/shop/industrial) other than a bungalow on an independent plot is provided with covered parking amenity e.g. Parking Garage, Stilt-Parking and Multi-storeyed Parking, the built-up area of such covered parking should be valued at 25% the rate after allowing the permissible deduction/addition to the rate of concerned user (flat/office/shop/industrial) as per the Annual Statement of Rates. However, the parking area on an open land should be valued at 40% the rate of land in the concerned valuation zone. If the instrument does not mention any parking area, a Deed of Guarantee containing an assurance that no covered or open parking area for the flat/office/shop/industrial user has been provided, should be taken and it should form a part of the instrument.

(a) If the plot area is limited upto 2125 Sq.mt, it should be valued at the full rate.

(b) If the plot area exceeds 2125 sq.mt and is less than 2500 sq.mt, valuation should be done on the maximum 2125 sq.mt at full rate of land. If the area exceeds 2500 sq.mt, instead of slab-wise valuation, valuation should be done after allowing a straight-away deduction of 15%.

(c) If no separate valuation zone/rates are prescribed for the lands in No-Development Zone, such land should be valued at 40% the rate of land in the concerned valuation zone where the land in question is included. 15% deduction in the context of the area of land as stated above should not be given. Before this rule is invoked, it will be necessary to obtain the latest D.P Remarks and Plans of Mumbai Municipal Corporation regarding the inclusion of said land in No-Development Zone and to annex the same to the instrument.

While valuing residential buildings/flats/offices on the upper floors of a building not equipped with lift facility, the following percentage of the Rates should be taken into consideration.

While valuing multi-storied residential buildings/flats/office premises on the upper floors of such building, the following increase over the rates as applicable to the concerned valuation zone should be taken into consideration.

While calculating the number of floors, all the floors above and excluding stilt or ground floor should be counted consecutively. For a shop premises or IT user in a Multi-storeyed building such increase should not be made.

Valuation of the multi-storeyed industrial premises:-

Multi-storeyed industrial premises should be valued by allowing a deduction of 5% for the each floor from first to fourth floor. For all the floors thereon a maximum 20% deduction shall be permissible. The benefit of this guideline will not be permissible in the case of premises in an Information & Technology Park. If the Annual Statement of Rates does not prescribe separate rate for the industrial area/user, 110% the rate applicable to a residential building should be taken into consideration. If no rate is prescribed even for a residential building valuation should be carried out as per Guideline No. 7(iii).

Redevelopment Proposals of Co-operative Housing Societies:-

In case of redevelopment proposals of co-operative housing societies, if the valuation of properties included therein as per the Annual Statement of Rates is not acceptable to the concerned parties, the instrument shall be elaborately valued by Adjudication under section 31 of the Maharashtra Stamp Act, 1958.

Sanctioned Development Plan and the valuation of lands reserved for public purpose:-

Of the area mentioned in the instrument pertaining to the sanctioned development Plan, only the reserved/affected area should be valued at 80% the rate mentioned in the Annual Statement of Rates. Those reservations in the CRZ area in which TDR is not permissible, such reserved/affected areas should be valued at 80% the rate mentioned in the Annual Statement of Rates and by taking into consideration Guideline No.17.    

Development Agreement-Valuation in case of sharing of the construction area:-

(a) The value of share awarded to the owner of land

     (i) The value of area comprised in the share of land owner as per the rate of construction.

+

     (ii) The value worked out after taking into consideration the monetary compensation awarded to the land owner apart from the area of construction, interest on deposit, development charges and such other factors as mentioned in the instrument (if instrument mentions interest on Deposit exceeding 10%, such rate of interest or where the rate of interest is not so mentioned 10% simple interest should be taken into consideration.

(b) Value of the share awarded to the Developer:-

Area of the land comprised in the share of Developer x Rate of Land

Of clauses (a) and (b) above, the higher value should be taken into consideration as the market value.  

In case of revenue sharing under a Development agreement, the valuation shall be done as follows:-

(a) Value of the share awarded to the land owner:-

   (i) Current Value of the land owner’s share in terms of the rate of sale having regard to the permissible user thereof x 0.85

+

   (ii) The value worked out after taking into account the compensation awarded to the land owner apart from the above, interest on deposit and such other factors as mentioned in the instrument (If the instrument mentions interest on deposit exceeding 10%, such rate of interest or 10% simple rate of interest should be taken into consideration.

(b) Valuation of the whole land at the rate of land mentioned in the Annual Statement of Rates

   Of clauses (a) and (b) above, the higher value should be taken into consideration.

Development Agreement- Factors to be taken into consideration for the valuation in case of registration of instrument regarding sharing of the construction area/Adjudication:-

(a) Value of the Fungible Floor Space Index:- Since Development Control Regulation No. 35(4) permits Fungible Floor Space Index, it should be included in the value of construction area awarded to the land owner under a Development agreement. As the developer too gets the Fungible Floor Space Index, the value of such Fungible Floor Space Index should be included in the value of Floor Space awarded to him. However, since the developer is permitted Fungible Floor Space Index only on the payment of premium, the amount of such premium should be deducted from the value of Floor Space.

(b) Value of Development charges:- Since the development charges payable to the Municipal Corporation in respect of the built-up area awarded to the land owner is paid by the Developer and such amount is comprised in the benefit accruing to the land owner, the said amount should be included in the value of construction area worked out as per the new rates of construction.

Factors to be taken into consideration in case of valuation for the registration of Development Agreement for Slum Re-development Project/Adjudication:-

(a) Total value comprising the value of the built-up area awarded to the land owner as per the new rates of construction specified in the Annual Statement of Rates + Monetary and any other compensation awarded in some other form.

(b) The value of built-up/floor space area accruing to the Developer at the applicable rate of land after deducting therefrom the cost of slum rehabilitation construction or 50% value of the entire land at the applicable rate of land, of these the higher amount should be taken into consideration.

   Of the amounts worked out as per clauses (a) and (b) above, the higher amount should be taken into consideration as the Market value for the levy of Stamp Duty.    

Factors to be taken into consideration in the case of valuation for the registration of Development Agreement pertaining to the Re-development project comprising cessed buildings/Adjudication:-

(a) Total value comprising the value of built-up area awarded to the land owner as per the rates of new construction under the Annual Statement of Rates + monetary and any other compensation in other form.

(b) The value of built-up/floor space area awarded to the Developer at the applicable rate of land after deducting therefrom the cost of tenant rehabilitation construction or 50% value of the entire land at the applicable rate of land, of these the higher amount should be taken into consideration.

     Of the amounts worked out as per clauses (a) and (b) above, the higher amount should be taken into consideration as the Market Value for the levy of Stamp Duty.

Valuation of the instruments concerning the flats/shops/offices etc. retained by the Developer in the context of a Development Agreement for self-purchase:-

Instruments concerning the flats/shops/offices etc. retained by the Developer for self-purchase in the context of a Development Agreement should be valued at the rates assigned to flats/shops/offices etc under the Annual Statement of Rates after deducting therefrom the rates of new construction as per the applicable construction classification and stamp duty should be levied on the amount so calculated.

It shall be essential to enclose true copies of the necessary documents/plans with the instrument in question, before the appropriate deduction/decrease/exemption under all the aforesaid Guidelines can be granted.

If the same survey number is found in two valuation zones, valuation should be done at the higher of those rates. If the said rate is not acceptable, necessary papers in support thereof should be presented to the concerned Divisional Deputy Director, Town Planning (Valuation) to have the valuation zone determined.

Valuation to carried out where the area on the terrace of a building is transferred or leased out for the installation of a Mobile Tower:-

Such user should be taken into consideration as a ‘commercial’ user and the value of such conveyance should be calculated at 40% the rate of a commercial user (shops/occupational units on the ground floor) in the concerned valuation zone of the Annual Statement of Rates. If such area is transferred by way of lease, percentage of value as per Article 36 of Schedule-1 under section 3 of the Maharashtra Stamp Act, 1958 should be taken into consideration. This Guideline does not apply to a Leave & Licence Agreement of less than 5 years’ duration under Article 36A. This guideline shall apply to a Leave & Licence Agreement of more than 5 years’ duration or if the instrument is in the nature of Lease.

Valuation of plots of all the users having width of 12.0 metres or more (corner plot)/land/shop premises around the corner:-

Valuation of plot/land/shop premises around the corner facing such road should be valued at 110% rate applicable to the open land/ shops on the ground floor in the concerned valuation zone of the Annual Statement of Rates. This guideline shall not apply to a flat/residential user on the ground floor/office user on the upper floors.

If any Government or Semi-Government Organisation or Government Corporation/Undertaking or Local Authority (Municipal Corporation/Council) is selling or allotting any property on the basis of pre-determined price under the proviso to Rule No. 4(6) of the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995, the price so determined by such bodies should be treated as the true Market Value thereof and stamp duty should be charged accordingly. In respect of the property mortgaged with banks, the price fetched in the auction conducted by and before the Government Officer appointed by concerned Department at the Ministry level of the State/Central Government should be treated as the Market Value of the property and stamp duty should be charged accordingly. Except the above matters, in no other case shall the determined/agreed/compounded value be taken into consideration.

Guidance for determination of valuation zone and Rate of value:-

if any property is not included in the valuation zone or if the value rates thereof are not available, the Joint District Registrar and Stamp Collector should contact the office of the Deputy Director, Town Planning (Valuation), Mumbai Region and make available to them such documents as 7/12 Extract or Property Card of the Property, Sectional Plan indicating land use under the Development Plan, Village Plan, City Survey Office Sheet, Survey Plan and have the valuation zone and Rates of Value determined.