BHUBANESWAR: The state cabinet on Friday okayed a nominal fee of Rs 50,000 to be paid towards stamp duty for the transfer of ‘common areas’ to the ‘association of allottees’ in a real estate project.
This would facilitate handing over of the entire project land to the home buyers and also pave way for registration of apartments for the homebuyers.
Earlier, the association of allottees was required to pay 5 per cent stamp duty for execution of the deed which often resulted in a significant financial burden on apartment owners and created impediments in the process of apartment registration.
To simplify the process, the state cabinet approved insertion of a new clause ‘clause-d’ under Article-23 of Schedule-I-A of the Indian Stamp Act, 1899. As a result the buyers association is now required to pay only a nominal stamp duty of Rs 50,000 for execution of the deed for transfer of the project land in its favour.
The Odisha Apartment (Ownership and Management) Act, 2023, mandates transfer of entire common areas and facilities in favour of the association of allottees at the time of registration of first deed of conveyance.
Official sources said, the 5 per cent stamp duty pertaining to individual apartment unit along with the undivided proportionate share in the common areas and facilities will be collected during execution of individual deeds in subsequent phases.
As transfer of common area was mandatory for registration of sale deeds, the move will pave way for registration of apartments in the real estate project.
Apart from this, the cabinet also approved the Odisha Skill Development Project (OSDP)-II, a five year initiative with an outlay of Rs 1,140 crore to be implemented from 2025-26 to 2029-30 with assistance from the Asian Development Bank (ABD). The ABD will fund Rs 570 crore, while another `570 crore will be sourced from the state budget.