Mumbai sees dip in property registration; stamp duty rebate should be extended, say experts

Sweety AdimulamUpdated: Friday, June 11, 2021, 10:24 PM IST
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Property registration & stamp duty revenue collection witnesses sharp decline | Image by Free-Photos from Pixabay

Mumbai has recorded a drop in the property registration. According to the data available from Inspector General of Registration and Controller of Stamps (IGR) Maharashtra (Mumbai) in last 10 days in June only 2,637 houses conveyance (sale) has been recorded. Following which the revenue made through the stamp duty is of Rs 136.42 crores. Similarly, across Maharashtra around 50,561 conveyance documents recorded making revenue of Rs 495.25 crores.

However, the property registration is witnessing a downward trend as compared to the property registration data in month of January, February and March. In these months each, around 20,000 property registrations have been recorded.

According to the real estate sector experts and representatives, the decline in registration is due to the no continued discount offered by the government in stamp duty registration fees. Earlier, due to the waiver of 2-3 percent in stamp duty fees valid only till March 2021 homebuyers were interested in property buying.

However, now considering the impact of 5 percent stamp duty fees on housing sales, developers have been urging government to reconsider their decision and extend the stamp duty benefits in a bid to encourage homebuyers.

CREDAI MCHI, President Deepak Goradia was quoted saying, " We had requested for an extension of the reduction beyond March 2021 to ensure that the momentum of this industrial and economic revival stays on its tracks. However, in the last couple of months, we’ve seen a steep downward trend in enquiries and sales, hampering not just the steady progress made by Real Estate but also the 250 ancillary industries which come into play due to industry’s strong multiplier effect. It is now imperative that the Govt. realizes the need for a stamp duty rebate to enhance homebuyer sentiments and also increase its own revenue collections."

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