Maharashtra Slashes Stamp Duty On 99-Year Leases For Mumbai Housing Societies
The Maharashtra government has drastically reduced the stamp duty for registering 99-year lease agreements and occupancy rights for cooperative housing societies in Mumbai and its suburbs, including prime localities like Colaba, Nariman Point, Cuffe Parade, and Marine Drive. Announced recently during a Legislative Assembly session by Revenue Minister Chandrashekhar Bawankule, the revised policy slashes stamp duty to a maximum of 0.5 per cent for residential properties and 1.5 per cent for commercial properties.
The decision resolves a decades-old issue affecting thousands of cooperative housing societies that were allotted government land on long-term leases during the 1960s and 1970s. Due to administrative delays, these societies could not register their lease agreements at the time and were recently asked to pay stamp duty based on current market values, creating enormous financial liabilities.
BJP MLA Atul Bhatkhalkar raised the issue in the Assembly, urging the state government to amend the law and calculate the stamp duty based on the market value prevailing at the time of the original land allotment rather than current rates. Responding to the demand, Bawankule unveiled the revised policy to ease the financial burden on the affected societies.
To illustrate the impact of the relief, Revenue Minister Bawankule shared several examples of drastic reductions in liabilities during the Assembly session. For instance, the stamp duty for Mittal Chambers Owners Cooperative Society has been slashed from ₹101.21 crore to ₹10.68 lakh.
Similarly, New Makers Chamber will now pay ₹1.76 crore instead of the earlier ₹119.47 crore. Sea Lot Cooperative Housing Society in Colaba saw its liability drop from ₹176.82 crore to ₹27.05 lakh, while Abhilasha Premises Society’s stamp duty was reduced from ₹104.83 crore to ₹19.45 lakh.
During the legislative discussion, members of the Assembly sought clarity on whether the relief would extend beyond the city center. Bawankule confirmed that the revised rates of 0.5 per cent for residential properties and 1.5 per cent for commercial properties will apply uniformly across both Mumbai city and its suburban districts.
