Maharashtra Slashes Stamp Duty to 0.5% on 99-Year Lease Registrations for Societies

Revenue Minister Chandrashekhar Bawankule told the Maharashtra Legislative Assembly on 7 July 2026 that stamp duty for registering 99-year lease agreements and occupancy rights will be capped at 0.5 per cent for residential properties and 1.5 per cent for commercial properties. The change targets thousands of cooperative housing societies in Mumbai and its suburbs that were allotted government land on long-term leases in the 1960s and 70s but never formally registered the lease.

Why this matters

Because those old leases were never registered, societies wanting to complete registration now were being asked to pay stamp duty calculated on today's market value of the land rather than its value at the time of the original allotment. For societies sitting on prime South Mumbai land, that produced stamp duty bills running into tens or hundreds of crores of rupees — effectively making registration unaffordable. BJP MLA Atul Bhatkhalkar had raised the issue in the Assembly, pressing the government to base the calculation on historical rather than current values.

Scale of the relief

The minister cited several examples to illustrate the impact: Mittal Chambers Owners Cooperative Society's stamp duty liability falls from ₹101.21 crore to ₹10.68 lakh, New Makers Chamber's from ₹119.47 crore to ₹1.76 crore, Sea Lot Cooperative Housing Society in Colaba's from ₹176.82 crore to ₹27.05 lakh, and Abhilasha Premises Society's from ₹104.83 crore to ₹19.45 lakh. The revised 0.5%/1.5% rates apply uniformly to both Mumbai city and the suburban district — there is no separate, higher rate for suburban societies.

What this means for housing societies

• Societies on legacy 99-year government leases that have been putting off registration due to the cost can now estimate a far smaller stamp duty outlay under the 0.5% (residential) / 1.5% (commercial) cap.
• Managing committees in Nariman Point, Cuffe Parade, Colaba, Marine Drive and similar older localities should check whether their land falls under an unregistered long-term lease and, if so, consult the Sub-Registrar's office on the revised calculation.
• Completing lease registration secures the society's legal title to the land, which matters for redevelopment financing, conveyance and resale transactions.
• A separate announcement in the same Assembly session waived transfer premiums on BBD Reclamation flats transferred before 2015, relevant to about 1,500 flat owners in that area.

The government has not yet notified the formal rules implementing the revised rates; societies should watch for the Registration & Stamps Department circular before initiating registration, and can consult a society lawyer or chartered accountant on documentation needed to prove the original allotment date and value.