Maharashtra Cuts Stamp Duty to 0.5% for Mumbai Housing Societies

In a significant move, the Maharashtra government has reduced the stamp duty payable for the registration of 99-year lease agreements and occupancy rights for cooperative housing societies in Mumbai and its suburbs. The decision, announced by Revenue Minister Chandrashekhar Bawankule in the Legislative Assembly, will see residential properties attract a maximum stamp duty of 0.5%, while commercial properties will be charged 1.5%.

This move is expected to bring major relief to thousands of housing societies that were allotted government land on long-term leases during the 1960s and 1970s but could not register their lease agreements due to administrative delays. As a result, these societies were being asked to pay stamp duty based on current market values, leading to enormous financial liabilities.

The issue was raised in the Assembly by BJP MLA Atul Bhatkhalkar, who urged the government to amend the law and calculate stamp duty based on the market value prevailing at the time of the original land allotment rather than current rates. Responding to the demand, Bawankule unveiled the state's revised policy aimed at significantly reducing the financial burden on affected societies.

The minister presented several examples in the House to highlight the impact of the decision. For instance, the stamp duty for Mittal Chambers Owners Cooperative Society has been reduced from ₹101.21 crore to ₹10.68 lakh, while New Makers Chamber will now pay ₹1.76 crore instead of ₹119.47 crore. Similarly, Sea Lot Cooperative Housing Society in Colaba will pay ₹27.05 lakh against the earlier liability of ₹176.82 crore.

During the discussion, legislators also sought clarification on whether the relief would extend to Mumbai's suburban areas. Bawankule confirmed that the revised stamp duty rates of 0.5% for residential properties and 1.5% for commercial properties would apply uniformly across both Mumbai city and suburban districts.

The government believes the policy will provide substantial financial relief to hundreds of cooperative housing societies in prime localities such as Nariman Point, Cuffe Parade, Colaba, and Marine Drive, while resolving long-pending legal and registration issues that have remained unresolved for decades.

The Assembly also discussed the issue of property transfers in the BBD Reclamation area, with the Revenue Minister announcing that the government has waived the transfer premium on flats transferred before 2015. This decision is expected to benefit 1,500 flat owners and 91 affected properties in the area.

Overall, the reduction in stamp duty is a significant move that will provide relief to thousands of housing societies in Mumbai and its suburbs, and is expected to resolve long-pending issues related to lease agreements and occupancy rights.

The decision is also expected to have a positive impact on the real estate market in Mumbai, as it will make it easier for housing societies to register their properties and resolve long-pending disputes. With the revised stamp duty rates, housing societies will be able to save millions of rupees, which can be used for maintenance and development of their properties.

In conclusion, the Maharashtra government's decision to reduce stamp duty for cooperative housing societies in Mumbai and its suburbs is a welcome move that will provide significant relief to thousands of housing societies and resolve long-pending issues related to lease agreements and occupancy rights.