News | Oct 05, 2022
Developers have made a demand to the state government to provide a partial waiver in stamp duty payment to boost sales of real estate in Maharashtra. The proposal was mooted on October 3 to Chief Minister Eknath Shinde.
PUNE: Developers have made a demand to the state government to provide a partial waiver in stamp duty payment to boost sales of real estate in Maharashtra. The proposal was mooted on October 3 to Chief Minister
National Real Estate Development Council (Naredco) president Rajendra Pate and Pune Naredco secretary Abhay Kele told TOI that as the demand was put forth, the CM has suggested preparing a detailed presentation with all projections of revenues for the state government.
"We appealed to make stamp duty 50% and add the balance 50% from developer members of Naredco. We intend to offer zero stamp duty to homebuyers," said Kele. He explained that if the state government were to reduce the stamp duty by half, it would be taken on by the developers, resulting in zero stamp duty to homebuyers.
Many developer bodies across the state besides Naredco have been demanding this reduction since last year. Confederation of Real Estate Developers' Associations of India (Credai) national vice president Shantilal Kataria said they have also been demanding that stamp duty be reduced as it does not affect the state government exchequer and only helps consumers to invest in projects.
"During the Covid-19 pandemic period, stamp duty was reduced and it was seen that the government revenue did not suffer, but transactions did increase. There were months that saw an increased transaction and revenue collection increased ," he told TOI.
The builder fraternity added that the rationale for the demand was also the rising home loan interest rate. The latest hike of half a percentage was announced last week by the Reserve Bank of India (RBI).
Shinde was in charge of the urban development portfolio previously and had pushed for relief in stamp duty payment. Builders said this decision provided impetus to the real estate sector and that they hope the CM accepts their demands and makes changes in stamp duty now.