Maharashtra slashes stamp duty to Rs 1,000 for allotment of apartments in self-redevelopment projects

Existing members in old buildings of Mumbai who opt for self redevelopment and want to purchase extra area from their society will have to pay stamp duty as per the prevailing market rate.

To make self-redevelopment of old buildings in Maharashtra more viable, the Maharashtra government has announced that registered co-operative housing societies that opt for self-redevelopment will have to pay only Rs 1,000 as stamp duty for allotment of apartments in the newly constructed building to existing flat owners.

The prevalent stamp duty varies between 5 percent and 7 percent of the total agreement value, depending on the city and district. Currently, stamp duty for those purchasing apartments under the Pradhan Mantri Aawas Yojana (PMAY) ― affordable housing scheme of the Central government ― is also Rs 1,000.

And now societies taking up self-redevelopment will also be charged on the same lines, as the government resolution (GR) issued by Maharashtra Revenue Department on July 14 stated.

Also read: Maharashtra govt to frame policy on stalled real estate projects, gives push to self-redevelopment

The GR, however, clarified that homebuyers purchasing apartments from the open market in self-redeveloped societies will have to pay stamp duty as per the prevailing market rate. Also, existing members who opt to purchase extra area from their society will have to pay stamp duty as per the prevailing market rate.

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Mehul R Thakkar

Special Correspondent|Moneycontrol

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Maharashtra Deputy Chief Minister Devendra Fadnavis, on 8 May, 2023, had directed the state administration to fast-track implementation of the self-redevelopment policy approved by the government back in 2019. It was also decided to have a dedicated single-window clearance in Mumbai for self-redevelopment, and the applications received there would be processed in three months.