Govt proposes amnesty scheme to recover disputed stamp duty worth ₹2,900 crore

The department of registration and stamps in Mumbai is proposing an amnesty scheme to resolve stamp duty-related disputes worth ₹2,900 crore ($405 million) that have been pending for over three decades. The scheme would likely include a waiver of both the penalty and the stamp duty amount, with the state expecting to recover at least ₹500 crore ($69.8 million). The proposed scheme would be launched in two phases of three months each to expedite the recovery process.

MUMBAI: With stamp duty-related disputes worth ₹2,900 crore pending with the government for over three decades, the department of registration and stamps has proposed the launch of an amnesty scheme. With a likely waiver in both the penalty and the stamp duty amount, the state expects to recover at least ₹500 crore.

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Currently, there are 2.32 lakh cases of disputes over stamp duty paid on registered properties, most of which date back to the 1980s. The disputed amount is about ₹1,075 crore while the penalty levied on this is ₹1,850 crore. To expedite the recovery and weed out pendency, the revenue department is considering launching the amnesty scheme in two phases of three months each.

The contentious cases relate to the difference between the actual amount of stamp duty paid by citizens and the amount as per auditors’ estimates. “The disputes have arisen out of misinterpretation by registration officers or miscalculations,” said an official from the office of the Inspector-General of Registration. “Officials from the department of registration and stamps serve notices to these parties after assessment by internal auditors. We levy an annual penalty of 24 percent on the difference between the estimated and actually paid stamp duty, increasing the value of the unrecovered amount manifold.”

An official from the revenue department said that the state government linked stamp duty rates with the market rates of properties registered in 1985, and introduced this with retrospective effect from 1980. “The actual charts of market rates were published in 1989-90, leading to disputes over documents registered during this period,” he said. “About two lakh cases among the disputed cases are from these ten years. However, the unrecovered amount from them is only 10 to 15 percent of the total amount. The major amount is expected to come from disputed cases post-2000.”

The revenue department is expected to propose a heavy waiver on the penalty amount during the amnesty scheme. While it is likely to waive both stamp duty and penalty on old cases if the disputed amount is less than ₹1 lakh, it is proposing to waive the penalty for cases post-2000. “We may offer a heavy waiver for the first three months of the amnesty scheme and reduce it for the second phase of three months. We expect a recovery of ₹500 crore from the scheme,” said the revenue officer.

The officer said that the proposal was expected to come up before the state cabinet in the next few weeks for approval, as the finance department had already given its nod to it.