Maharashtra Announces Amnesty Scheme For Property Registration
The Maharashtra government has approved an amnesty scheme for the homebuyers in the state who have not completed their property registration. Such homebuyers could now complete registration by paying only 10 per cent of the penalty on the deficit amount. This scheme is available only for next six months.
This move is aimed at allowing residents of housing societies, especially those under the Maharashtra Housing and Area Development Authority (Mhada), the City and Industrial Development Corporation (Cidco), the Slum Rehabilitation Authority (SRA), to pay their pending dues and complete the deemed conveyance transaction.
The state government has approved of the scheme by amending Section 9(a) of the Maharashtra Stamp Duty Act. According to officials of the state’s revenue department, there are thousands of transactions lying with the department that have incomplete registration process. With this move, the department aims to encourage owners of such properties to complete the registration and avoid legal hassle.
Homebuyers in Maharashtra, according to the rule, have to pay a stamp duty before executing a property transaction, and register the property within four months. However, many fail to present their allotment deeds or property transfer papers at the time of registration. For such incomplete registration, the state’s revenue department levies a penalty at the rate of two per cent per month on the deficit amount paid as stamp duty. The highest penalty could go up as high as four times the deficit amount. The defaulting homebuyers pay a nominal stamp duty on the transactions, aware of the fact that it is not valid.