The Maharashtra government has waived registration fees for 400–600 sq ft homes under Mumbai’s cluster redevelopment projects; announced by Revenue Minister Chandrashekhar Bawankule
Maharashtra Revenue Minister Chandrashekhar Bawankule. Filepic
Maharashtra Revenue Minister Chandrashekhar Bawankule on Thursday announced that registration fees for homes allotted under cluster development projects in Mumbai would be waived off.
Bawankule, while issuing an official statement, said that “the government had approved exemption from registration fees for units between 400 sq ft and 600 sq ft being allotted to tenants and residents shifting into new buildings under cluster redevelopment,” as cited by news agency PTI.
The Revenue Department had already granted approval to the Inspector General of Registration and Controller of Stamps on November 18, he said.
The Maharashtra Minister further added that the decision will give major support to ongoing and pending redevelopment work.
Moreover, the decision would benefit a large number of families in Mumbai, and the waiver would reduce the financial burden on residents even as the construction area offered to them increases by up to 200 sq ft.
Maharashtra’s Minister of Revenue further said that the exemption aims to give momentum to delayed redevelopment projects in the Brihanmumbai Municipal Corporation limits and ensure that occupants of old structures receive their due homes.
Under earlier norms, residents had to pay stamp duty on the additional area received during redevelopment at either the construction cost or the ready-reckoner rates.
The revised guidelines on cluster redevelopment homes will now allow assessment of the base area, additional area, and fungible area received under cluster schemes at concessional valuation, which is at 112 times the rent or the lower applicable rate, reported PTI.
As per the Development Control and Promotion Regulation, residents are entitled to a minimum of 35 sq metres of carpet area in cluster development.
Depending on the size of the cluster, they also receive 10 to 35 per cent additional area and 35 per cent fungible area. All of this will now be treated as a replacement area and valued at nominal rates for stamp duty calculation, which the minister said would improve the financial viability of projects and help expedite long-pending proposals.
According to the Revenue Department, a small project on a 1-acre (43,000 sq ft approx.) plot would save about Rs 21.14 lakh in stamp duty due to concessional valuation of roughly 51.975 sq metres of additional area.
Whereas in a large cluster of 50,000 sq metres (5 hectares), the exemption would result in savings of around Rs 4.36 crore, as the number of eligible units is much higher, as reported by news agency PTI.
(With inputs from PTI)
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