Govt fixes Rs 1,000 as stamp duty of tri-party agreement

Mumbai: In order to boost redevelopment of old properties including buildings and chawls on Brihanmumbai Municipal Corporation (BMC) land, the state government has decided to fix stamp duty of tri-party agreement of Rs 1,000. The decision was taken in a cabinet meeting chaired by chief minister Devendra Fadnavis Tuesday. Earlier, the stamp duty was paid at six per cent of the property, including one per cent cess for metro projects.

According to the cabinet decision, a stamp duty of only Rs 1,000 over tri-party agreement for redevelopment of the dilapidated and dangerous buildings or chawls would be collected. The move will help redevelop the BMC properties.

Officials in Mantralaya said that there were close to 4,000 tenanted properties, which were sprawling across all 24 wards of Mumbai and the Mumbai suburbs. These tenanted buildings also included the Bombay Improvement Trust (BIT) chawls among other societies in Mumbai.  Approximately 46,000 tenants were residing in these tenanted buildings.

Out of the 4,000 tenanted properties, close to 700 properties were old, dilapidated and dangerous. These properties had been redeveloped. So now, only 3,300 properties, which were 60 to 80 years old, were remaining to be redeveloped.

At present, the development of dilapidated and old buildings was being done by signing a tri-party agreement among tenants, developers and the BMC. The stamp duty was calculated as per the market value of the property and was paid by the tenants in lakhs, the officials explained. The stamp duty went up to crores, also depending on where the property was located.