Self-redevelopment projects now require only Rs 1,000 as stamp duty in Pune

The State Government of Maharashtra has taken a significant stride towards promoting self-redevelopment projects by introducing a reduced stamp duty for existing flat owners. Under the new policy, flat owners will only be required to pay a nominal stamp duty of Rs 1,000, regardless of the property's agreement value, compared to the previous rate of 5-7 percent. This move aims to encourage the revitalization of aging housing societies and provide affordable housing options in prominent cities like Mumbai, Thane, and Pune. The government's decision, as outlined in the issued government resolution, signifies its commitment to fostering self-redevelopment initiatives throughout the state.

It is expected to have a positive impact on housing societies that have been around for approximately three decades, alleviating the burden of higher stamp duty payments that were previously imposed. While this reduction is advantageous for existing flat owners in self-redevelopment projects, it is important to note that homebuyers who purchase apartments in these projects from the open market will still be subject to the prevailing market rate for stamp duty. The State Housing Federation representatives have lauded this move, highlighting the significance of self-redevelopment in meeting the demand for affordable housing in urban centres. The reduced stamp duty is seen as a catalyst for driving self-redevelopment projects, which are vital for providing sustainable and accessible housing solutions to the population.

According to Suhas Patwardhan, the Vice-President of the state housing federation, the decision to reduce stamp duty for self-redevelopment projects is commendable. He highlighted the importance of implementing a single-window system, as outlined in the 2019 government resolution, to streamline the approval process for such proposals. Patwardhan emphasized the need for this system to be implemented in conjunction with the reduced stamp duty. Currently, there is no available data on the number of self-redevelopment proposals in the state.

The Government's commitment to expediting the implementation of self-redevelopment policies, as directed by Deputy Chief Minister Devendra Fadnavis, underscores its dedication to streamlining the process and creating an enabling environment for these initiatives. While consumer organizations such as the Watchdog Foundation have welcomed the reduction in stamp duty, they advocate for further reductions to make self-redevelopment projects even more enticing. Advocate Godfrey Pimenta of the Foundation suggested a nominal stamp duty of Rs 100, which he believes would incentivize more projects and stimulate greater participation in the revitalization of housing societies.

Overall, this progressive step towards reducing stamp duty in self-redevelopment projects reflects the State Government's visionary approach to promoting affordable housing and sustainable urban development. By creating a favourable ecosystem for self-redevelopment, Maharashtra is poised to unlock the potential for rejuvenating housing societies and meeting the evolving needs of its residents.

Next (US International Development Corp grants $50 million loan to IIFL Home Finance)

Self-redevelopment projects now require only Rs 1,000 as stamp duty in Pune

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