Maharashtra government introduces new appeal mechanism for stamp duty disputes

“Stamp duty is the second-highest source of revenue for Maharashtra after GST, with an annual collection target of around Rs 55,000-60,000 crore across the state. At present, when stamp duty matters decided by stamp collectors go in appeal or revision before the Chief Controlling Revenue Authority (CCRA) and parties are still dissatisfied, they approach the Bombay High Court. Around 150 such cases are pending, involving demands running into crores of rupees, many of them five to ten years old,” said a stamp department official from Mumbai.

“Once a matter reaches the High Court, recovery proceedings are stayed, demand notices are halted, and cases remain pending for years. This adversely affects both the state and litigants. Penalties continue to accrue at 2 per cent per month, going up to 24 per cent annually, yet the state is deprived of revenue during this period. Even when cases ultimately succeed, the maximum penalty payable is capped at four times the stamp duty. 

Delays only lead to uncertainty, prolonged litigation and hardship for parties. The new amendment will ensure speedy disposal on merits, reduce unnecessary writ petitions, and protect state revenue while giving litigants a fair and time-bound appellate remedy. It will cover all categories of stamp duty, including property transactions, mergers and other instruments,” explained the official.

Under the amendment, a new Section 53B has been inserted in the Act, allowing aggrieved parties to file an appeal against CCRA orders passed under Section 53(1A) before the State Government within 60 days of receiving the order, upon payment of a fee of Rs 1000.

Legal vacuum

Until now, there was no statutory provision for appealing CCRA orders under the Stamp Act. As a result, affected parties were compelled to approach the Bombay High Court under its writ jurisdiction. Officials said this had contributed to a significant backlog, with nearly 150 writ petitions currently pending before the High Court challenging various CCRA decisions, explained the officer.

The absence of an intermediate appellate forum was widely viewed as a legal vacuum, particularly given the substantial financial implications of stamp duty determinations in property and commercial transactions, the officer said.

Expected relief

Legal experts believe the amendment will play a crucial role in reducing litigation and improving administrative efficiency. By providing an alternative remedy before the State Government, the new mechanism is expected to substantially reduce the number of writ petitions filed before the High Court.

Officials also said the administrative appellate forum would ensure faster disposal of disputes, lower litigation costs for citizens, and better accessibility compared to approaching a constitutional court. At the same time, the High Court’s extraordinary jurisdiction under Articles 226 and 227 of the Constitution will remain unaffected.

Other changes

Along with introducing Section 53B, the amendment makes several consequential changes to the Act. The provision in Section 53(1A) declaring CCRA orders as “final” has been removed, enabling appeals. Section 32C has been amended to refer to the new appellate provision, while Section 53A(1) has been modified to exclude instruments involved in appeals under Section 53B from certain procedural requirements.

Pending matters

The amendment is also expected to benefit litigants. Instead of challenging CCRA orders directly in the High Court, they can now first appeal to the Revenue Minister within sixty days. If they remain dissatisfied, they still reserve the right to approach the High Court.

Legislative intent

The Statement of Objects and Reasons accompanying the amendment underscores the government’s intent to reduce court pendency by strengthening administrative remedies before judicial intervention. The reform aligns with broader efforts to streamline dispute resolution and decongest constitutional courts.

The notification enforcing the amendment was issued by State Revenue, Joint Secretary, Satyanarayan Bajaj, exercising powers under Section 1(2) of the Act. Interestingly, only time will decide the fate of the pending writ cases challenging the CCRA orders before the High Court.

Authorities speak

Ravindra Binwade, Inspector General of Registration and Stamps, State of Maharashtra, said, “The High Court process will continue, but from January 15, 2026 onwards, when the amendment is enforced, we will have a statutory appellate mechanism for cases rejected under Section 53A by me as CCRA. This is about fair adjudication. In case of dispute with the CCRA order, parties can now approach the appellate authority (the government/revenue minister). Aggrieved parties can appeal within the prescribed time, giving them due opportunity for justice, said Ravindra Binwade, Inspector General of Registration and Stamps, State of Maharashtra.

Raghunath Gawade, Additional Controller of Stamps, Mumbai, said, “The government has taken a good decision, and we have to implement it. Instead of approaching the High Court by filing a writ petition, parties will now have a statutory remedy, under which they can file an appeal before the Revenue Minister of Maharashtra, challenging a CCRA order. The intention is to ensure that appeals are filed and decided without unnecessary delay.”

Rs 55,000-60,000 cr
The annual stamp duty collection target across the state

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