Maharashtra Stamp Duty Amnesty Scheme 2023 Called as Maharashtra Mudrank Shulk Abhay Yojana 2023 Announced by The Government

The Maharashtra government, under the leadership of Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis, recently unveiled the Maharashtra Mudrank Shulk Abhay Yojana 2023, a stamp duty amnesty scheme, during a cabinet meeting on 23 November 2023.

What is Maharashtra Mudrank Shulk Abhay Yojana 2023?

For documents that were registered or unregistered between January 1, 1980 and December 2020, the Revenue Department has authorised a full exemption from stamp duty fees and the penalty amount that would have been imposed later on payment.

"The Abhay Scheme will exempt the entire stamp duty and penalty owed to the Revenue department on deeds executed between January 1, 1980 and December 31, 2020, but not filed or registered," the government said in a statement.

Will it be a complete waiver?

The exact percentage of waiver that will be applied to the penalty fees is presently unknown, according to sources.

Who all will benefit through this amnesty scheme?

The scheme, which will be executed in two phases by the Revenue department, aims to benefit housing societies. The first phase is scheduled from December 1, 2023, to January 31, 2024, followed by a second phase from February 1, 2024, to March 31, 2024. The specifics of these phases are yet to be disclosed.

Prabhu praised the initiative, noting its potential to significantly reduce penalties, which could be as high as 400% on certain documents. He explained that the scheme could offer some relief on penalty amounts, encouraging people and housing society members to complete their stamp duty registrations.

The amnesty scheme addresses the issue of numerous agreements for sale, conveyance deeds, and other documents that were inadequately stamped under the Maharashtra Stamp Act, 1958. Insufficient stamp duty on such documents renders them inadmissible in court. To regularize these documents, beneficiaries must pay not only the deficit stamp duty but also a hefty penalty, which can amount to 400% of the stamp duty.

The scheme also aims to facilitate Deemed Conveyance for societies affected by unpaid duties by flat owners. Documents that are not properly stamped or registered and those that have evaded stamp duty are eligible for this scheme, provided they are executed on stamp paper from authorized vendors or franking centers. Documents on bogus stamp papers or those from Telgi vendors are excluded.

In Maharashtra, approximately 2.32 lakh cases are pending regarding stamp duty disputes on registered properties, primarily from the 1980s. The disputed amount is around Rs 1,000 crore, with a penalty of Rs 1,800 crore. This amnesty scheme is an effort by the Revenue department to expedite recovery and reduce pending cases.

When and how will this scheme be implemented?

The Maharashtra Revenue Department will implement the programme in two phases.

From December 1, 2023, to January 31, 2024, the first phase of the scheme will be implemented. The second phase, which will run from February 1, 2024, to March 31, 2024, will then commence.

While the government has confirmed the waiver on both stamp duty fees and penalties, Ramesh Prabhu, Chairman of the Maharashtra Societies Welfare Association, feels that the government might only offer partial relief on penalty fees. He also indicated that outstanding stamp duty fees would still need to be settled in accordance with the Maharashtra Stamp Act, 1958.

Expert Inferences with regards to Maharashtra Mudrank Shulk Abhay Yojana 2023:

As a real estate analyst, this amnesty scheme appears to be a strategic move by the Maharashtra government to address long-standing issues in the real estate sector. By waiving penalties and offering concessions on stamp duty fees, the government is not only incentivizing the regularization of property documents but also potentially unlocking significant revenue, which had been stalled due to disputes and non-compliance.

This could lead to a more transparent and efficient property market in Maharashtra, benefiting both the government and property owners. However, the success of this initiative will largely depend on the clarity of its execution and the response from the citizens and housing societies involved.