Exclusive| 'Government Needs To Think About Tax System For Buying House' : Niranjan Hiranandani
Niranjan Hiranandani, co-founder and Managing Director of Hiranandani Group, spoke to ETV Bharat in an exclusive interaction.
Published : September 29, 2025 at 11:11 AM IST
By Kaustubh Khatu
Mumbai: Niranjan Hiranandani, co-founder and Managing Director of Hiranandani Group, has blamed the policies of the Centre and the state government for the rising prices of houses in Mumbai.
Mumbai, the capital of Maharashtra, is also the financial capital of India. Lakhs of people across the country come to the megacity and settle here. There is a lot of struggle for the common man to buy a house in Mumbai, which is also called as city of dreams. However, for many, buying a house remains an unfulfilled dream.
Expressing the opinion that the government policy is behind the increasing price of houses, Hiranandani blamed the government's tax system. Usually, during the festive season, a large number of houses are sold every year.
"The government collects a tax of Rs 20,000 on the houses we build for Rs 40,000 and sell them. As a result, ordinary people have to buy these houses for Rs 60,000. This policy needs to change at some point of time," Hiranandani told ETV Bharat.
"Today, the common man cannot afford to buy a house. The Centre and the state government need to find a way out of this. We are selling a house for Rs 40,000. Of this, Rs 20,000 are going towards the government's development tax, stamp duty, Goods and Services Tax (GST) and other taxes. The Maharashtra government has now announced that it will make a provision of 76,000 crore for affordable houses. Therefore, these projects will be implemented through salt pan lands through the third Development Project, Maharashtra Housing and Area Development Authority (MHADA), and CIDCO. The government is looking for a way out of this. I am also worried that the common man cannot afford to buy a house according to the ready reckoner rate." Hiranandani added.
A ready reckoner is a document or guide that provides a standardised reference for calculations or values, such as a government-set minimum property value (Ready Reckoner Rate) (RRR) in India used for stamp duty calculation, or a reference guide for updated tax laws like the GST Ready Reckoner.
