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Maharashtra Budget 2026-27: Penalty for insufficient stamp duty on home purchase to be raised from ₹5,000 to ₹1 lakh
Maharashtra Budget 2026-27 update: CM Devendra Fadnavis proposed increasing the penalty for insufficient payment of stamp duty from ₹5000 to ₹1 lakh
The Maharashtra Budget for 2026-27 presented by Chief Minister Devendra Fadnavis in the assembly on March 6 has proposed increasing the penalty for executing property registration documents with insufficient stamp duty to as much as ₹1 lakh from the existing penalty of ₹5,000.
Currently, the penal provisions under Sections 59, 60, 63A and 68A of the Maharashtra Stamp Act prescribe penalties starting from ₹5,000 for instruments executed with inadequate stamp duty.
The government has now proposed to revise the penalty range from ₹5,000 up to ₹1 lakh. The provisions also allow for rigorous imprisonment and financial penalties upon conviction for such violations.
Fadnavis, in his Budget speech, said, "The penal provisions under Sections 59, 60, 63A and 68A of the Maharashtra Stamp Act provide for rigorous imprisonment and penalty upon conviction if an instrument is executed with insufficient stamp duty. It is proposed to revise the amount of penalty from rupees five thousand up to rupees one lakh.”
"With this revision, the incidence of execution of instruments with insufficient stamp duty can be brought under control,” he said.
Officials said the move aims to curb the execution of property agreements and other instruments where stamp duty has been underpaid.
Stamp duty is a major source of revenue for the Maharashtra government, particularly from property transactions in cities such as Mumbai, Pune and Thane. Authorities have increasingly relied on stricter compliance and digital monitoring of registrations to prevent revenue leakage.
According to media reports, stamp duty and property registration together generate over ₹50,000 crore annually in Maharashtra, making it one of the state government’s largest revenue streams after GST and sales tax.
Master Plan for redevelopment
The Maharashtra government on March 6 proposed a budget outlay of ₹1,400 crore for the housing sector in the 2026-2027 budget.
The government proposed a master plan to redevelop housing for 20 lakh slum dwellers in the Mumbai Metropolitan Region (MMR) and to develop 10 lakh affordable houses, including rental housing.
The government also proposed growth hubs in cities such as Pune, Nashik, Nagpur, and Chhatrapati Sambhaji Nagar, on the lines of Mumbai.
Also Read: To boost auctions, Maharashtra waives stamp duty on ‘enemy properties’
The budget placed significant emphasis on infrastructure development. Major metro rail projects in Mumbai and Pune were announced along with plans to expand the state's metro network to 1,200 kilometres. The government also highlighted the progress of the Mumbai-Ahmedabad bullet train project and proposed the development of new expressways and transport corridors across the state.
It proposed developing the 'No New Slum Framework' using GIS-based mapping in the Mumbai Metropolitan Region, followed by the development of New Nagpur as a business and financial hub to boost Nagpur City's economic growth.
In the education sector, the government proposed establishing an ‘EduCity’ in Navi Mumbai with six international universities and plans to develop eight to ten educational cities across the state.
