Documents of properties worth Rs 4,000 crore suspended in Vadodara over collection of stamp duty of development contract

Vadodara: Documents of properties worth around Rs 4,000 crore have been suspended in Vadodara after the documents of customers were also withheld in the sub-registrar's offices over the issue of under-payment of stamp duty in the agreement between the land owner and the developer.

The details in this regard are such that in vadodara city, in addition to the last 25 years, the lands are being developed by registering the registered development agreement in favor of the promoters or builders firm in favor of the promoters or builders firm. Till 2011, only Rs.100 stamp duty was charged for these contracts, which was being increased in phases and on March 7, 2024, the government issued a circular deciding to levy stamp duty at the rate of 4.90 percent on the  development agreement.

Based on this circular, the registration of documents has been stopped by the sub-registrars in case the development agreement has been signed before March 7, 2024. On the other hand, notices have been issued by the Stamp Duty Assessment System. A few days ago, CREDAI had made representations in this regard at Gandhinagar and the government had also assured that no more stamp duty would be charged in the earlier agreement, but there was no clarity on this, the sub-registrar offices have stopped the documents of houses, flats or shops sold to customers by insisting on more stamp duty in the development agreement.

Credai has claimed that in Vadodara alone, in the last six months, the registration of registered contracts and registered sale documents of property worth more than Rs 4,000 crore has been stopped. Despite repeated representations in this regard, no solution to the problem has been done by the government. Since diwali is a month later, there is also a situation of spoiling the Diwali of the citizens.

Notices to levy more stamp duty and  levy 10 times penalty

Steps have also been initiated by stamp duty assessment offices to charge more stamp duty in old development contracts. Notices have been issued to all land owners and builders by two offices in Vadodara as well as notices to levy 1.4 per cent stamp duty and pay 10 multiple penalties.

Continuous increase in stamp duty since 2011

Till 2011, only 100 stamp duty was charged by the government on registered development contracts and then from 2011 to 2014, only 1 per cent stamp duty was charged. Later, from 2014 to March 7, 2024, 3.50 per cent stamp duty was levied on development contracts. This stamp duty and registration fee was charged by the developers and after March 7, 2024, it was decided to charge 4.90 percent stamp duty.