Amending Stamp Act will remove key hurdles in apartment registration: CREDAI
BHUBANESWAR: The state unit of Confederation of Real Estate Developers’ Associations of India (CREDAI) on Wednesday said the amendments proposed on the Stamp Duty act would remove a major financial and procedural hurdle in apartment registration across the state.
The state cabinet recently approved a proposal to insert a new Clause, ‘clause-d’ under Article-23 of Schedule-I-A of the Indian Stamp Act, 1899. With this amendment, the association of allottees will have to pay only a nominal stamp duty of Rs 50,000 for execution of the deed of conveyance for common areas and facilities.
Under the Odisha Apartment (Ownership and Management) Act, 2023, the transfer of entire common areas and facilities in favour of the association of allottees at the time of registration of the first deed of conveyance was made mandatory. However, the requirement of paying 5 per cent stamp duty for execution of such deeds had resulted in a substantial financial burden on apartment owners and had created practical impediments in timely registration.
President of CREDAI state federation Swadesh Kumar Routray said the state government has decided to amend the act to address this issue and simplify the process.
“The amendment will not only ease the formation and registration of associations of allottees but also promote smoother handover of common areas, enhance legal clarity and support orderly growth of the housing sector,” he said.
The applicable 5 per cent Stamp Duty on the individual apartment unit, along with the undivided proportionate share in the common areas and facilities, will continue to be collected at the time of execution of individual deeds of conveyance in favour of the allottees.
The realtors’ body has thanked Chief Minister Mohan Charan Majhi and Housing and Urban Development minister Krushna Chandra Mahapatra for their proactive and responsive approach in resolving a long-standing issue faced by homebuyers and housing societies.