Dharavi Redevelopment: Maharashtra Waives Stamp Duty On Lease Agreements To Accelerate Project

In a continued push to expedite the Dharavi Redevelopment Project (DRP), the Maharashtra state cabinet, chaired by Chief Minister Devendra Fadnavis, has approved a significant concession in stamp duty on lease agreements related to the project. This comes shortly after the allotment of the Kurla Mother Dairy land for the rehabilitation of residents affected by the project.

According to the Revenue Department, the Dharavi Redevelopment Project—being executed through a Special Purpose Vehicle (SPV)—has been designated as an Essential Urban Infrastructure Project and a Special Project. In line with the state's existing policy for such critical initiatives, Tuesday’s decision includes stamp duty concessions on sub-lease agreements between the Rail Land Development Authority (RLDA), New Delhi, and the Dharavi Redevelopment Project or the Slum Rehabilitation Authority (SRA), Mumbai.

The cabinet's approval brings these lease-related documents formally under the umbrella of the state’s concession policy. This move is aimed at reducing the financial burden on stakeholders and facilitating smoother execution of one of Asia's most ambitious urban renewal efforts.

Officials stated that by easing fiscal and procedural hurdles, the state government is trying to fast-track the long-awaited redevelopment of Dharavi, one of Mumbai's most densely populated and underdeveloped neighborhoods.

In a further relief for project-affected residents, Revenue Minister Chandrashekhar Bawankule told The Free Press Journal that the cabinet has also decided to waive off stamp duty for residents receiving new homes under the redevelopment. Instead, only a nominal registration fee of Rs1,000 per house will be charged. “This decision has been taken in the interest of the people and public welfare,” Bawankule said.

What is a Special Purpose Vehicle (SPV)?

Special Purpose Vehicle (SPV) for the Dharavi Redevelopment Project is a joint venture between the Maharashtra Government and Adani Realty, formed under the name Navbharat Mega Developers Private Limited.

Adani Realty holds an 80% equity stake

The Government holds 20%, represented by the Dharavi Redevelopment Authority (DRA) and the Slum Rehabilitation Authority (SRA).

The SPV is responsible for planning and executing the entire redevelopment, including construction, rehabilitation, and infrastructure development.