In a stunning admission that could shake up Maharashtra’s housing policy, Deputy Chief Minister Eknath Shinde has openly acknowledged that government-imposed taxes, fees, and civic body premiums—especially from the Brihanmumbai Municipal Corporation (BMC)—are playing a major role in driving up the cost of housing in Mumbai and other urban centres.

Shinde, who also holds the Housing and Urban Development portfolio, made this revelation in a written response to a question in the state legislature, marking one of the most direct acknowledgments by a sitting government official that its own levies are contributing to the real estate affordability crisis.

Addressing the nearly 30% gap between the cost of construction and final sale prices—often seen as builder profit—Shinde outlined that the escalation isn’t just due to rising raw material costs like cement, steel, bricks, and sand, but also because of mandatory statutory charges such as GST, labour cess, royalty, insurance, and sharply increased premiums imposed by municipal authorities.

This rare disclosure came in response to a joint query by legislators Satej Patil, Ashok alias Bhai Jagtap, Abhijeet Vanjari, and 13 others, who pressed the state government on its role in unchecked property price hikes and the recent increase in Ready Reckoner (RR) rates.

Defending the 4.39% RR hike for Mumbai—introduced after a gap since 2022–23—Shinde argued that the official rates are still far below actual market values. However, critics point out that even this marginal rise further burdens homebuyers, especially in the face of rampant speculative pricing.

As a counterweight, Shinde cited that MHADA sold 2,030 homes in 2024 at 30%–40% lower than prevailing market prices, portraying it as proof of the government's commitment to affordable housing.