50% concession on stamp duty for integrated township projects

The Maharashtra state government has announced a 50% concession on stamp duty for integrated township projects in less developed areas around key cities, in order to encourage the generation of housing stock. The concession will apply to any residential, commercial properties or land that are part of an ITP approved by the designated authority, and will benefit about 30 townships around major cities like Thane, Navi Mumbai and Pune. The move is expected to bring competitive pricing of houses in the real estate in key cities.

Mumbai: To give a fillip to integrated township projects (ITPs) in less developed areas around key cities by encouraging generation of housing stock, the state government has announced a 50% concession on stamp duty in such projects.

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The move is likely to benefit about 30 townships around major cities like Thane, Navi Mumbai, Pune.

In a notification issued last week, the revenue department announced that the order will have retrospective effect from November 2018 and will be applicable on the project approved during this period. The scheme will cost around ₹50 crore to the exchequer towards the waiver.

“The scheme will be applicable to any residential, commercial properties or land that are part of the ITP approved by the designated authority. The waiver will be applicable for the first deal between the purchaser and the project proponent. The benefits will be given to the ITPs in the areas of regional plans and development plans,” the order stated. The order, however, will not be applicable for ITPs in Mumbai.

According to an urban development department official, the concessions will give a boost to the planned townships with sufficient infrastructure. “The townships are set up in green zones by paying a specified premium and thus the townships are constructed on relatively cheaper lands than the ones in the area reserved for residential purposes. The experience of the townships such as Lodha Palava, Magarpatta and Nanded City on the outskirts of major cities have served the purpose and helped generate cheaper housing stock.”

“The concession in stamp duty will directly benefit flat and shop buyers. They also minimise the responsibility of the government for the construction of infrastructure and develop newer areas,” he added.

The officer added that though the ITPs were part of policy earlier, now they are part of the unified development control and promotion regulations (UDCPR) announced in December 2020.

Another official said that the state government expects more ITPs to be developed on the outskirts of Thane, Navi Mumbai, Pune and Pimpri Chinchwad among others with low-cost housing stock. “This would help bring competitive pricing of the houses in the real estate in key cities as well,” he added.

Pankaj Kapoor, Managing director, Liases Foras, said, “The waiver will help polarising the demand for housing stock, availing low-cost housing and also help connecting areas of these townships with the cities. It will also help the industry with the most needed initial boost.”