Mumbai: Independent consumer rights body Mumbai Grahak Panchayat (MGP) has written to Maharashtra Chief Minister highlighting how its latest government resolution on charging ₹1,000 to existing flat owners of self-redevelopment is in direct contravention to a recent court order.
The correspondence highlight’s February 17, 2023 landmark Bombay High Court order wherein it has been detailed that for Permanent Alternate Accommodation Agreements (PAAA) in case of redevelopment projects, not more than ₹100 is to be paid as stamp duty.
The court order reads, “Once the development agreement is stamped, the PAAA cannot be separately assessed to stamp beyond the Rs100 requirement of Section 4 (1) if it relates to and only to rebuilt or reconstructed premises in lieu of the old premises used/ occupied by the member, and even if the PAAA includes additional area available free to the member because it is not a purchase or a transfer but is in lieu of the member’s old premises. The stamp on the Development Agreement includes the reconstruction of every unit in the society building. The stamp cannot be levied twice.”
"Contempt to the Bombay High Court’s order"
“Maharashtra government’s July 14 resolution shows lack of attention to the court orders passed a few months ago. It also is a contempt to the Bombay High Court’s order,” said Advocate Shirish Deshpande, Chairman, MGP.
The Free Press Journal had reported on July 16 about the state government issuing a government resolution to this effect to make people pay ₹1,000 instead of up to 7% of the property’s value.