Maharashtra Cuts Stamp Duty For Mumbai Housing Societies To 0.5%, Bringing Major Relief On 99-Year Lease Registrations
· Free Press Journal
Mumbai: In a major relief for thousands of cooperative housing societies in Mumbai and its suburbs, the Maharashtra government has drastically reduced the stamp duty payable for the registration of 99-year lease agreements and occupancy rights. Revenue Minister Chandrashekhar Bawankule announced in the Legislative Assembly that residential properties will now attract a maximum stamp duty of just 0.5 per cent, while commercial properties will be charged 1.5 per cent.
The decision is expected to resolve a decades-old issue affecting 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, 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.
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Highlighting the impact of the decision, the minister presented several examples in the House. Stamp duty for Mittal Chambers Owners Cooperative Society has been reduced from ₹101.21 crore to ₹10.68 lakh. New Makers Chamber will now pay ₹1.76 crore instead of ₹119.47 crore, while Sea Lot Cooperative Housing Society in Colaba will pay ₹27.05 lakh against the earlier liability of ₹176.82 crore. Similarly, Abhilasha Premises Society's stamp duty has been reduced from ₹104.83 crore to ₹19.45 lakh.
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 per cent for residential properties and 1.5 per cent for commercial properties would apply uniformly across both Mumbai city and suburban districts.
The Assembly also discussed the issue of property transfers in the BBD Reclamation area. The Revenue Minister announced that the government has waived the transfer premium on flats transferred before 2015. Assembly Speaker Rahul Narwekar welcomed the decision because 1,500 flat owners and 91 affected properties in his constituency.
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.
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