Flat-Owners who skipped paying stamp duty on their home-purchase agreements will soon be given a huge sop — a chance to regularise their flat purchase if they pay up the stamp duty within a specific time-frame.

By the end of this month, the state’s Revenue Department will announce the Stamp Duty Amnesty Scheme 2008. Under this scheme, anyone who has evaded paying stamp duty can pay up the amount along with a nominal penalty.

Unless stamp duty is paid on flat-purchase agreements, the propetry’s conveyance cannot be executed. This leads to problems later, especially when residents wish to go in for redevelopment of their buildings. Also, banks shy away from granting loans against such properties.

Usually, the only way out is by paying up the stamp duty at the rates prevailing when the flat was purchased, along with a hefty penalty that starts from 2 per cent per month, subject to a maximum of 200 per cent. For instance, if a person has evaded payment of stamp duty of Rs 1 lakh for his flat in 1998, the maximum he can be made to cough up now would be Rs 3 lakh — the original sum plus the maximum penalty.

According to property lawyer Vinod Sampat, the penalty during the period of the amnesty scheme will be in the range of Rs 250 to Rs 500. “This is just another pre-election year lollipop. As against an honest tax payer who has paid his stamp duty say ten years ago, somebody who bought a flat at the same time but did not pay stamp duty gets away with enjoying the principal amount for all these years. And all he has to shell out is a penalty of Rs 500,” he said.