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The Maharashtra government has reduced stamp duty to 0.5% for residential lease agreements, while commercial lease agreements will now attract a maximum duty of 1.5%.
Mumbai Real Estate: The Maharashtra government has approved a major reduction in stamp duty for 99-year lease agreements of cooperative housing societies built on leasehold land.
The decision is expected to benefit thousands of housing societies across Mumbai by lowering registration costs and speeding up long-pending legal formalities.
Revenue Minister Chandrashekhar Bawankule announced the decision in the Maharashtra Legislative Assembly on July 7.
Under the new policy:
Earlier, stamp duty could go up to 5%, depending on factors such as lease conditions and the premium paid. The revised rates are expected to make lease registration much more affordable for housing societies.
The decision mainly benefits cooperative housing societies built on government leasehold land with 99-year lease agreements.
Many societies have been unable to register their lease documents for years because of high stamp duty costs and lengthy procedures. The lower rates are expected to help societies complete their legal documentation more easily.
The concession will apply to:
The revised rates will be applicable across Mumbai city and its suburban areas.
The government shared examples showing how much housing societies could save under the new policy.
According to Revenue Minister Chandrashekhar Bawankule:
The revised policy is expected to benefit societies in areas such as Nariman Point, Cuffe Parade, Colaba, Marine Drive, and several parts of suburban Mumbai.
Many housing societies in Mumbai are built on leasehold land instead of freehold land.
Registering lease agreements is important because it helps societies:
Without proper registration, many redevelopment and property-related activities can face delays.
In a leasehold property, homebuyers own their apartments, but the land remains under the ownership of another authority or organisation.
The housing society receives the right to use the land for a fixed period, usually 99 years, but it does not own the land permanently.
In Mumbai, leasehold land is commonly owned by government agencies such as:
Private trusts and organisations also own some leasehold land.
Under a freehold system, both the building and the land belong to the housing society.
The developer transfers complete ownership of the land through a conveyance deed, giving the society full legal rights over the property.
The Maharashtra government believes the new policy will also support redevelopment projects across Mumbai.
Many old residential buildings require redevelopment, but societies often need to register or renew lease agreements before construction can begin.
Lower stamp duty will reduce the financial burden on both housing societies and developers. This is expected to make redevelopment projects more financially viable and help projects move forward faster.
As Mumbai continues to redevelop ageing buildings, the government's decision is likely to simplify legal processes while reducing costs for thousands of residents.
