by Akhilesh K Prasad
The Maharashtra government has recently issued a notification on Amnesty Scheme 2019, in the best interest of homebuyers who have not yet completed the registration process for their property. Such homebuyers are now being allowed to pay stamp duty on the property purchased along with a nominal penalty. Such payment has to be made within a stipulated period of 6 months.
For perspective, earlier home buyers were liable to pay a penalty of 2% per month subject to a maximum of 400% on the unpaid or deficit stamp duty from the date of execution of sale agreement. Needless to say, that this was a burden for several buyers and therefore had been pending. The Amnesty Scheme under Section 9 of the Maharashtra Stamp Act 1958 to be implemented between March 1 and August 31 has therefore proved a blessing for such buyers.
This decision by the Maharashtra government is especially aimed at residents of housing societies such as; Maharashtra Housing and Area Development Authority (MHADA), City and Industrial Development Corporation (CIDCO) and Slum Rehabilitation Authority (SRA).
The procedure to be followed has been laid down by the notification as follows:
- Eligibility: Any person who is a part of a document or is entitled to a property on which stamp duty has partly or wholly not been paid is eligible to apply. A person holding a power of attorney to such property is also eligible.
- Form A: The applicant has to fill Form A in detail as prescribed under the scheme.
- Documents: The applicant must provide the original instrument on which inadequate stamp duty was paid, along with self-attested copies of supporting documents as prescribed in the scheme.
- Deadline: The applicant must apply before the end date, which is 31st August 2019.
- The amount payable: After the completion of all due processes, the application will be evaluated for the amount of deficient duty and penalty. This amount must be cleared within 60 days, failing which the application will stand null and void.
Several transactions had been pending due to incomplete registration. The scheme is an opportunity for property holders desirous of selling their properties without any impending legal hassles. Thus it could provide a fillip to the residential property market in Maharashtra. Also, the government will collect extra revenue on this account.
All-in-all, it is a win-win situation for all vested interests.
An MBA by qualification, Akhilesh has dabbled into various businesses. He is a keen debater, data miner and analytically inclined. His blogs tend to present a fresh perspective on any given matter.