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28th May, 2009  Source: The Hindu Business Line
 
Residents of the Mumbai metropolitan region who were short-changed by builders while buying flats will get stamp duty refund provided the transaction remains incomplete.The Maharashtra Government has decided to amend Section 48 (1) of the Bombay Stamp Act of 1958, so that refunds can be made to people within six months of their application to the State Government. Under the Bombay Stamp Act, refund is only made available when the builder/developer refuses to hand over the property to the owner after construction is complete. The Government has also decided to amend those sections of the Act relating to leave-and-licence agreements so that the duty charged in Mumbai region is on par with that levied in Pune and Thane district.






Maharashtra Govt to amend Section 48 (1) of Bombay Stamp Act

The Hindu Business Line

Our Bureau

Mumbai, May 27 Residents of the Mumbai metropolitan region who were short-changed by builders while buying flats will get stamp duty refund provided the transaction remains incomplete.


The Maharashtra Government has decided to amend Section 48 (1) of the Bombay Stamp Act of 1958, so that refunds can be made to people within six months of their application to the State Government.


A decision to this effect was taken at the State Cabinet meeting on Wednesday.


Mr M. Ramesh Kumar, Additional Chief Secretary (Stamps), Maharashtra Government, said that the refunds would be applicable to incomplete transactions in the event the property developer suppresses facts, builds the house on an area lesser than what was agreed upon in the pact or if the construction itself is illegal. Refunds would also be done if the financial institution concerned refuses to give a loan for buying the house, he said.


Under the Bombay Stamp Act, refund is only made available when the builder/developer refuses to hand over the property to the owner after construction is complete.


Mr Anuj Puri, Chairman, Jones Lang LaSalle Meghraj, told Business Line that such transactions (where cheating takes place) are less that one per cent of the total in the real estate sector. It would, therefore, not impact the larger market. Even so, the State has given the right kind of relief to people, he added.


The Government has also decided to amend those sections of the Act relating to leave-and-licence agreements so that the duty charged in Mumbai region is on par with that levied in Pune and Thane district.


The Act will also be amended so that the Court-appointed notary will be empowered to charge duty on notary transactions.

Keywords:Bombay Stamp Act
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