Mumbai, June 30 (IANS) In a significant move to safeguard state revenue and plug loopholes in the law, the Maharashtra government on Tuesday introduced a bill in the Legislative Assembly to amend the Maharashtra Stamp Act.
The bill was presented by Revenue Minister Chandrashekhar Bawankule. The bill makes it clear that no refund or concession of stamp duty will be granted under any circumstances if a development agreement is cancelled, rescinded, or terminated.
The bill seeks to insert a specific explanation in Section 48 of the Maharashtra Stamp Act. This change aims to prevent misuse of existing provisions while ensuring uniform and transparent implementation of stamp duty rules across the state.
In recent years, a large number of development agreements have been executed, with substantial stamp duty payable. However, many such agreements are later cancelled for commercial reasons or due to mutual differences.
This has led to a surge in refund claims, creating significant administrative challenges during fact verification and increasing the department’s workload.
Stamp duty is charged on the execution of the document itself and is not dependent on its revenue. Granting refunds in cases of cancellation was causing revenue loss to the state and opening avenues for potential misuse of concessionary provisions, the government said.
The proposed amendment adds a clear explanation after the proviso in Section 48, stating that the relaxation or refund provisions shall not apply to development agreements or any other instruments that attract the same rate of stamp duty as agreements. This will close existing loopholes and ensure that the benefit is not extended in such cases, the minister stated.
According to the minister, the amendment is expected to bring greater transparency and efficiency in the real estate sector and the stamp duty administration. It will strengthen revenue protection while maintaining clarity in the application of the law.
–IANS
sj/dan