Festive cheer: Stamp duty and registration collections see ₹550 crore jump in October

Stamp duty and registration collections reported in October was ₹3,221 crore as against the monthly estimate of ₹2,667 crore

In a heartening revival from the effects of the Covid-19 pandemic and lockdown, the state government has received a substantial jump of ₹550 crore in its collection of stamp duty and registration revenue in October. Stamp duty and registration collections reported in the month was ₹3,221 crore as against the monthly estimate of ₹2,667 crore. The rise in the collection has been attributed to the festive season, launch of new projects and the steady revival of the real estate sector after a slump for about one and half year.

In a heartening revival from the effects of the Covid-19 pandemic and lockdown, the state government has received a substantial jump of ₹550 crore in its collection of stamp duty and registration revenue in October. (HT PHOTO)

The budgeted estimated collection from the stamp duty and registration in financial year 2021-22 is ₹ 32,000 crore, which comes to ₹2,667 crore a month. After the major slump witnessed in April and May due to the second wave of the pandemic, the revenue receipts from the stamp duty and registration began to show an improvement. From a mere ₹ 835 crore in March, the collection went up to ₹2,640 crore in September. October however saw an even higher jump.

“There is a post Covid-19 revival not only in the real estate market but even in other sectors as well. After the inventory from pre-Covid pandemic was exhausted, the builders launched new projects and entered into new development agreements, some of which are worth ₹1,200 to ₹2,000 crore, which means the duty and registration amount paid on them is high. Though the growth is across the state, it is higher in big cities like Mumbai, Thane, Navi Mumbai, Pune and Nashik,” said Dnyaneshar Khilari, joint inspector general of registration, Maharashtra.

Another official from the revenue department said that they were seeing an improvement in revenue from banking, share market and industrial leasing as well.

Real estate experts said the rise was because of the festive season and secondary sale of inventory.

“Two third of the transactions in real estate markets are that of the resale of the flats possessed by the investors. They have been sold out of fear of potential further drop in the market and inability to pay off the loan taken on them. It is not true that the inventory from the pre-Covid-19 period exhausted. There are 2.81 lakh flats unsold in MMR, but yes, a few big players have succeeded in launching new projects by instilling confidence among the consumers that they will deliver on time,” said Pankaj Kapoor, Managing director, Liases Foras.

Kapoor said that the new launches or the projects in big cities is also because of the state government’s decision to reduce the premium charges on fungible Floor Space Index (FSI). “The rebate will be in force till December and to take advantage of it, many big players are launching projects by registering development agreements. The Brihanmumbai Municipal Corporation alone is expected to gain ₹8,400 crore till December from this premium,” he said.

Khilari said that they expect the revenue growth to remain same in the remaining months of the financial year. “If the rally continues, we can touch up to ₹29,000 crore in the current financial year,” he said.

The state government’s total revenue receipts in October was ₹23,438 crore, against ₹25,541 in September and ₹25,032 crore in August. The state government’s estimated revenue receipts in FY 21-22 is ₹3,68,987 crore against which its accumulated revenue receipts in seven months is ₹1,52,438 crore which is 41.31% of the target.