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Stamp duty scheme extended till Jan 15

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Shalini Nair

Posted: Jan 02, 2009 at 0058 hrs IST

Mumbai Introduced as a pre-election sop by the Maharashtra government, the stamp duty amnesty scheme has garnered revenue of Rs 157 crore for the state government’s coffers.

The scheme which ended on December 31, 2008 has received applications from 1.31 lakh defaulters from all over the state. A majority of these (91,237) are from Mumbai, which alone is responsible for Rs 127 crore of the revenue collected.

“The scheme was applicable to only residential properties, but the response has been more than expected,” said Ramrao Shingare, Inspector General of Registration for Maharashtra.

“In view of the large number of applications, we will give it an extension till January 15 so that those who have already submitted their applications can pay the amount,” he added.

In usual cases, defaulters who require stamp duty agreement at the time of their buildings’ redevelopment or for bank loans, have to cough up a hefty penalty. This can range from two per cent of the total duty amount per month from the date of execution of the agreement to a maximum limit of 200 per cent. But during the period of the amnesty scheme, defaulters can get away by paying only the original amount.

Despite being extended three times, thousands of flat owners wanting to avail the scheme had to wait endlessly in serpentine queues outside the respective stamp duty offices. “Even though the office opens at 10 am, people line up outside as early as five in the morning every day. There was never enough staff to attend to all,” said Raju Goradia, a resident of Sector No 5, Charkop, who has not succeeded in paying the amount despite numerous visits to the stamp duty office at Bandra Kurla Complex.

“The amount that I am supposed to pay is only Rs 5,000. But agents and brokers who are doing brisk business outside these offices are demanding up to Rs 30,000 if I want my work done without any hassle,” he said.

Meanwhile, the state government has announced that the rates for this year would be the same as last years. “If necessary, we might review the decision later, but as of now it is unchanged,” said Shingare. Last fiscal, the state government’s revenue collection from stamp duty, the second high source of revenue, was Rs 8,500 crore. This fiscal so far, it is about Rs 6,500 crore with collections steadily declining each month due to the fewer number of property transactions being carried out in view of the slump.

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