Stamp duty to rise as 60 offices in Maharashtra privatised

Last week, the revenue department issued a work order to the private firm, VFS Global Services, to set up and manage stamp duty offices across the state

Mumbai: The Maharashtra government has finalised a private agency to operate 60 private stamp duty and registration offices across the state, offering additional facilities and a better ambience. This move is seen as a step toward privatising the established network of 517 registration and stamp duty offices, similar to the privatisation of passport registration offices.

Noida, India - June 10, 2015: Housing societies and apartments along Noida-Greater Noida expressway, in Noida, India, on Wednesday, June 10, 2015. (Photo by Burhaan Kinu / Hindustan Times)

Last week, the revenue department issued a work order to the private firm, VFS Global Services, to set up and manage stamp duty offices across the state. The firm is expected to provide better ambience for an extra cost of ₹5,218 per registration. The first phase, comprising 30 centres, will begin in Mumbai, Thane, Pune, Nagpur and Nashik in the coming months.

“The decision to appoint a private firm was based on demand from some stakeholders. Some registration offices are in poor condition, lacking proper seating and restroom facilities. Homebuyers in plush areas of cities like Mumbai, Thane, and Pune, as well as executives coming to register documents from corporate offices, expect these offices to be well-equipped and enabled with facilities. We expect the private offices to cater to this class of clients,” said an official from the revenue department.

A committee headed by chief secretary Rajesh Aggarwal approved the work order for the company as it quoted the lowest amount. “The bid also included the condition of profit sharing if the private firm registers more than a specific number of documents per month,” the official said. “A sub registrar and an office assistant from the revenue department will lead the company officials.”

A total of 517 stamp duty and registration offices are run by the government across the state. “On receiving complaints of shabby conditions, the government had released ₹10 lakh per building for 100 offices’ refurbishment. Some of the Mumbai offices were refurbished by a few builders. The roll out of the second phase will depend on the success of the first phase,” the official said, adding that “the initiative may lead to the closure of the government offices for stamp duty and registration as the number of private offices go up gradually.”