UP cabinet approves landmark property reform aiming to curb disputes and boost registrations

In a significant move aimed at reducing familial property disputes and streamlining legal processes, the Uttar Pradesh government has capped the cost of officially partitioning assets. The state cabinet approved a flat maximum charge of Rs 5,000 for the stamp duty and registration fees on partition deeds.

Previously, the financial burden was considerably higher, calculated at 4% of the property’s value for stamp duty and an additional 1% for registration fees. According to an official statement carried by PTI, this steep cost had actively discouraged families from formally registering partition deeds, often leading to prolonged disputes in civil and revenue courts.

The reform, approved on September 2, is projected to have wide-ranging benefits. The government anticipates the policy will not only facilitate more amicable family settlements but also reduce litigation, ensure land and revenue records are updated and make properties more easily marketable.

Acknowledging the initial financial impact, the government statement noted an estimated revenue loss of approximately Rs 5.58 crore in stamp duty and another Rs 80.67 lakh in registration fees. However, officials are confident this will be offset in the long term. The government expects a substantial increase in the volume of registration applications, which will ultimately boost revenue streams.

The Uttar Pradesh administration has reportedly drawn confidence from the successful implementation of similar capped systems in other states, including Tamil Nadu, Karnataka, Rajasthan and Madhya Pradesh. The positive outcomes observed there have bolstered the belief that the move will strengthen both legal certainty and family harmony within the state.

This structural change is seen as a major relief for families navigating the complexities of property division, potentially marking the end of prohibitive costs that previously served as a barrier to formal and legally sound agreements.