The Stamp and Registration Department has issued a circular, providing relief to developers who want to sell flats or redeveloped properties constructed on land belonging to various government or civic agencies.
In a clarification issued on Thursday, the department said that builders do not need a No Objection Certificate (NOC) from agencies such as Maharashtra Housing Area and Development Authority (MHADA), Municipal and Industrial Development Corporation (CIDCO), Maharashtra Industrial Development Corporation (MIDC) or municipalities to sell or transfer flats constructed on their land. The clarification was issued by Stamp and Registration Deputy Inspector General Dharmdev Menkar.
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The confusion arose after the department amended Section 18(A)(1)(B) of the Registration Act in April. Property registration expert Hitesh Thakkar said the amendment was vague and officials interpreted it to require an NOC from MHADA, SRA, MIDC and CIDCO for every sale and transfer of a flat on their property.
“This led to procedural and other delays, which led to a 70% drop in the price of such properties. Some buyers also sought a refund of stamp duty as it was not possible to get the NOC in time,” he said.
However, the July 24 circular clarifies that the provisions of section 18(A)(1)(B) of the Registration Act will not apply to the sale or resale of residential and/or non-residential units in a building constructed by private developers on land leased from municipalities, local self-government bodies and authorities such as MHADA, CIDCO and MIDC.
They will, however, apply to documents such as final purchase deed/assignment deed in respect of land and construction in the interest of the organisation or company in respect of such property, the clarification said.
Raju Dhote, deputy inspector general of the stamp and registration department, said the clarification was issued after consultation with the state revenue department and law and judiciary department.
He had also informed State Stamp and Registration Inspector General Ravindra Binwade about the delay and revenue loss.
“The state’s finances are under stress because of the girl child and other welfare schemes. Most of the revenue comes from urban areas and we realised that our revenue from stamp and registration in urban areas is falling,” said a senior official in the state finance department.
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