Maharashtra’s Financial Boost: Abhay Yojana Targets Recovery of Rs 2000 Crore in Stamp Duty
Pune, 7th December 2023: The Abhay Yojana has been introduced to waive off or reduce penalties for the underpayment of stamp duty in property transactions. It is estimated that the Maharashtra state government will accrue around two thousand crore rupees through this scheme, marking a significant financial boost.
The state has provisions for penalizing incorrect or insufficient stamp duty payments on construction. However, approximately two lakh 34 thousand cases of defaulted stamp duty from the period 1980 to 2020 have not been recovered. The scheme is anticipated to generate about two thousand crore rupees for the state government. It will be executed in two phases: from December 1, 2023, to January 31, 2024, and from February 1 to March 31, 2024. The actual implementation of the plan is imminent.
Post-GST, the Department of Registration and Stamp Duty has become the highest revenue-generating account for the state government. Despite sending notices to those who have paid incorrect or insufficient stamp duty, the outstanding duty remains unrecovered. In many cases dating back to the 1980s, individuals involved have either passed away or changed addresses after property transactions.
Due to the challenges in recovery, the Department of Registration and Stamp Duty proposed the Abhay Yojana to the state government in July. Subsequently, the state cabinet has decided to implement this scheme. Under Abhay Yojana, penalties for incorrect or underpaid stamp duty will either be waived off or reduced.
