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Redevelopment Projects Offer Rs 100 Stamp Duty Benefit to Existing Members, Maharashtra Takes a Proactive Step

30 Jul 2023

The state property registration department has issued a new circular aimed at boosting redevelopment in old housing societies. According to the circular, residents of housing societies that are more than 30 years old and opt for redevelopment will now only have to pay a nominal stamp duty of Rs 100 at the time of registering their agreements. This move comes in line with the Bombay High Court's ruling, which clarified that once stamp duty was duly paid on the development agreement between the cooperative housing society and the developer, no further stamp duty was required on individual Permanent Alternate Accommodation Agreements between the developer, cooperative housing society, and its members. Previously, the process of obtaining stamp duty concessions on permanent accommodation was cumbersome, requiring all members to be present at the registration department. With nearly 40,000 eligible housing societies in the state, including around 19,000 in Pune, the new circular aims to incentivize redevelopment, particularly in Mumbai, Pune, and Nagpur, thereby facilitating smoother processes for both developers and residents.

However, some activists are calling for reimbursement to citizens who have already paid higher stamp duties in the past for redevelopment projects, as the new circular suggests that the previous charges might have been excessive. Before the High Court's ruling, the IGR had issued a circular differentiating stamp duty rates for confirmed parties in the development agreement and others based on construction cost. Developers were encouraging members to execute the development agreement with society office-bearers to save on stamp duty for permanent accommodation. With the latest clarification by the state, the process is expected to be streamlined, but concerns remain about compensating those who faced higher stamp duty charges earlier. Despite this, the new circular is seen as a positive step towards revitalizing older housing societies and promoting redevelopment, fostering urban development and addressing housing needs in Maharashtra.

 

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