Maharashtra Chief Minister Eknath Shinde has said that the state government would study and consider reduction in stamp duty charges as he aims to transform Mumbai into a slum-free city and pushed for affordable housing.
Shinde was speaking at a property exhibition organised by NAREDCO Maharashtra, from September 30 to October 2, at Bandra Kurla Complex (BKC).
Developers at the event made a demand to the Maharashtra government to provide a waiver in stamp duty payment to boost sales of real estate in the state. Earlier, developers had also made demands to reduce premium charges to further boost the real estate market in Maharashtra and Mumbai.
On the demand of charges of premium being reduced, Deputy Chief Minister and Housing Minister Devendra Fadnavis on September 30 had assured that the state government will look into it.
On October 2, Sandeep Runwal, president of NAREDCO Maharashtra, said that NAREDCO has always been supportive of the government’s initiative of affordable housing and police housing. He also urged for a reduction of stamp duty once again so that the benefits could be passed on to the home buyers.
"I urge the developers' body to give a proper chart of what they would like to have in the form of stamp duty. Thereafter, in consultation with the finance department, a viable golden mean could be reached," Shinde said.
"I am happy that Maharashtra is leading in the fields of housing and provision of better network of access roads. As a minister of Urban Development in the previous government we had already given concessions on premium to the building industry which helped its revival to a large extent and now too he is willing to extend support to the real estate sector."
The government is working towards better cluster development of old and dilapidated buildings and also give precedence to housing for the police personnel. "My vision is to make Mumbai a slum-free and healthy city,” added Shinde.
The stamp duty charges in Maharashtra are 6 percent of the total agreement value. Until March 2022, it was 5 percent was hiked because of the Metro cess. Those booking in the name of a female member get a concession of 1 percent.
Earlier, MLA Pratap Sarnaik stated that affordable housing is a major issue and the construction industry should work out on rational use of increased FSI.
Rajan Bandelkar, national president of NAREDCO, had suggested that the government should reduce the stamp duty by 50 percent and the balance could be borne by the industry. In this manner, more homebuyers will get the benefit.Also read: Hike in repo rate by RBI may impact real estate demand this festive season