By Accommodation Times News Service
The Landowners can take sigh of relief as they have to no longer pay stamp duty if they retain some flats or shops after their properties have been developed. The state government said that a circular will be issued in next two weeks. The additional government pleader Niteen Deshpande has informed the Bombay High court that the inspector general of stamps would issue a circular stating that no stamp duty will be payable if a land owner is retaining flats and shops after development of their properties.
A bench of Justice AM Khanwilkar and Justice Ashok Bhangale heard a PIL filed by Pune Chandreshekhar Nanekar seeking a declaration that land owners were not required to pay stamp duty on flats and shops retained by them after getting their property developed by a builder/developer. The lawyer in return said that retaining some commercial and residential premises after getting your own property developed by any developer or builder cannot be treated as conveyance as envisaged under the Bombay Stamp Act, 1958 and therefore no stamp duty can be levied in such a transactions. Adding further he said, stamp authorities in Maharashtra were insisting that landowners pay stamp duty on premises retained by them and cited a reply received from stamp authorities at Pune said the duty as per Article 25(b) and 25(d) of the Bombay Stamp Act was payable for commercial and residential premises.
Nanekar has approached high court through advocate Surel Shah saying those aware of the law were unnecessarily made to go through the lengthy adjudicatory proceedings under the Bombay Stamp Act.