Maharashtra: State releases ₹460 crore from stamp duty collections for Mumbai, Pune Metros

The Maharashtra government has released ₹460 crore towards constructing metro rails in Mumbai and Pune. The fund will be disbursed from stamp duty collections generated in the last 10 months.

𝗦𝘁𝗮𝘁𝗲 𝗿𝗲𝗰𝗼𝘃𝗲𝗿𝗶𝗻𝗴 '𝗺𝗲𝘁𝗿𝗼 𝗰𝗲𝘀𝘀' 𝗼𝗻 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀

Since April 1, 2022, the state government is recovering ‘Metro Cess’ from people involved in property transactions by levying an additional 1% charge on the stamp duty paid during real estate purchases, gift deeds and mortgage documents. This additional tax is being collected from the metropolitan areas of Mumbai, Thane, Navi Mumbai, Pune, Nashik and Nagpur.

On Monday, the Urban Development Department issued a government resolution clearing the release to the Mumbai Metropolitan Region Development Authority (MMRDA) as well as Pune Metropolitan Region Development Authority (PMRDA). As per the document, ₹400 crore has been earmarked for Mumbai and the balance ₹60 crore for Pune.

𝗡𝗼 𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗡𝗮𝘃𝗶 𝗠𝘂𝗺𝗯𝗮𝗶 𝗺𝗲𝘁𝗿𝗼 𝗿𝗮𝗶𝗹

Interestingly, no allocation has been made for Navi Mumbai Metro Rail, where a different project implementation agency has the mandate to create infrastructure. The City and Industrial Development Corporation (CIDCO) has also been entrusted with the task of creating an additional metro rail network such as the one connecting the upcoming international airport in Navi Mumbai with the existing one in Mumbai.

𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗺𝗲𝘁𝗿𝗼 𝗰𝗼𝗿𝗿𝗶𝗱𝗼𝗿𝘀 𝗶𝗻 𝗠𝘂𝗺𝗯𝗮𝗶 𝗰𝗼𝘀𝘁𝗹𝘆 𝘁𝗼 𝗲𝘅𝗰𝗵𝗲𝗾𝘂𝗲𝗿

In Mumbai, MMRDA is implementing multiple metro corridors to create a mass rapid transit system network. Some of the lines under construction include Metro 2B from DN Nagar to Mandale, Metro 4 & 4A between Wadala and Gaimukh on Ghodbunder Road, Metro 5 between Thane, Bhiwandi and Kalyan, Metro 6 from Swami Samarth Nagar to Vikhroli, Metro 7A between Andheri East (Gundavali) and Chhatrapati Shivaji International Airport and Metro 9 from Dahisar East to Bhayandar.

All these lines are capital intensive and one of them, Metro 7A, would be partially underground to make it even more expensive to construct.