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HOUSING

Stamp duty: ‘Amnesty’ or ‘Enrichment’ Scheme?
By M B RATNANNAVAR 

GALTHOUGH THE Department of Registration and Stamps has a vast expanse in the state of Maharashtra and is the 2nd highest revenue earning department of the state, has 522 offices all over Maharashtra managed by 2500 employees, the Offices of Controller of Stamps appear to be in a mess. No proper guidance from the authorities. Flat owners, who want to pay stamp duty honestly, have no smooth passage. They have to undergo many road blocks before they are satisfied of paying stamp duty. The NGOs though want to help these affected persons with proper guidance, no proper cooperation or communication from the IGR is forthcoming. The extension upto 31st October 2008 granted by the Maharashtra Government to flat/shop owners to pay stamp duty under the ‘Amnesty Scheme’ introduced from 6th June to 9th September 2008 was a relief. According to some experts on the issue there is a feeling ‘whether this is amnesty or enrichment scheme for concerned stamp duty officials/agents?

Maharashtra Finance Minister, Jayant Patil, while presenting the budget proposals for the year 2008-09 in his address had said, “The citizens who purchase flats or apartments establish a housing cooperative society. However, many a time, the land on which the building stands is not conveyed. This means that the purchasers do not get full property rights. The relevant law has been recently amended. A competent authority would shortly be appointed to implement the new provisions.” All the District Deputy Registrars have been declared as competent authority by the Government.

The stamp duty Amnesty scheme has been announced at a right time when the property market and in particular redevelopment of properties is booming. In view of this, conveyance in favour of the society has become necessity and the members are thronging to stamp offices for completing the requirement.

The problem seems to be never ending for the honest stamp duty payers. They have to undergo bundles of obstacles as there is no proper/clear guidance when they reach stamp office for payment. The Amnesty Scheme Awareness Campaign, undertaken by various NGOs such as Maharashtra Societies Welfare Association, Revathi Foundation, and the Members of Registration Fees and Stamp Duty Payers’ Association, all based in Mumbai by conducting workshops at various locations have been helping the flat/shop owners clearing their doubts and mis-apprehensions etc. The painstaking labour they have to undergo at the stamp office has been affecting the initiatives to pay stamp duty under the scheme. Although the payment of stamp duty under this scheme was very problematic and impracticable, the intervention from the above NGOs made the Government to relax certain conditions.

A question asked by these flat owners is why Government has not computerized online payment of stamp duty. When Income tax and many other government taxes are paid on line, why stamp duty cannot be paid online? It has a simple answer. The Revenue Department has to earn revenue for the Government. The one-line payment facility will result in smooth operations and will improve the system. The delay/non availability of on-line payment system for stamp duty facility is causing innumerable hardships to the flat owners…

In a letter addressed to Maharashtra Revenue Minister, Narayan Rane, on 08 September 2008 the Registration Fees and Stamp Duty Payers’ Association, a registered NGO in Mumbai, presented 18 problems and also suggested solutions to resolve the problems faced by the common man in paying the stamp duty.

The Association consists of prominent personalities of Mumbai, such as the President, Advocate Vinod Sampat, Vice President CA Vimal Punmiya, (also President of All India Business Council), Vice President, CA Ramesh Prabhu, (also Chairman, Maharashtra Societies Welfare Association), Vice President, prominent consumer activist Advocate Uday Wavikar, Secretary, Advocate Sanjeev Kanchan, (also President of Citizens Organisation for Public Opinion), Treasurer Advocate Mahabaleshwar Morjie, (also Secretary, Flat Owners Association), Treasurer, CA Manilal Simaria (also Vice President, The Malad Chambers of Tax Consultants, Mumbai) Jt. Secretary Anup Gupta and Secretary, Sreedhar Sharma, (also President, Revathi Memorial Foundation)

According to Sreedhar Sharma, Secretary, of the Association, after the meeting on 23rd September with the Principal Secretary, Revenue & Forests Department, Ramesh Kumar, IAS, all the members who participated commended and appreciated the positive attitude of the Principal Secretary, who gave directions to IGR for resolving the issues brought out before him.

After the first meeting with the Principal Secretary, the Federation had a separate meeting with the IGR Ramarao Shingare, IAS, at Pune when it submitted a letter listing 44 points for discussion, along with difficulties faced and suggested solutions.
According to the list, some of the problems faced by common man who visits the stamp office are:
 

• He has to stand in long queue – taking leave from office

• He is sent back for some or the other requirement

• Next time he has to again stand in queue afresh

• Not more than 200 documents are accepted in a day at the stamp office

• He has to reserve the number by staying overnight or engage a tout for the same

• He has to stand in queue for a long time till all earlier persons scrutiny is completed.

• Not accepting the document for the first time creates tension and anxiety

• After assessment, it is big liability for him to pay at a time, etc.etc.

In response to Principal Secretary’s directive to sort out the problems brought out, the IGR held a meeting with members of NGOs in his office at Pune which was attended by 10 members representing the Federation/Associations and 15 Government officials. This four hour long meeting ended with not a single solution for the problems. It seems the best answer used by Government officials in such cases is “we will examine”. When it will be examined and when effective measures are taken – is a moot question. The Federation members also asked for the minutes of the meeting including the decisions arrived at. According to Sreedhar Sharma there is no response from the IGR so far and the deadline of 31st October is fast approaching. This shows the lackluster attitude of the concerned official.

It appears from the website: www.igrmaharashtra.gov.in that Inspector General of Registration and Controller of Stamps, Maharashtra, has invited public tenders in sealed envelopes by 2nd July 2008 for computer hardware and services on B O T basis in 522 offices all over Maharashtra. The tenders are called division wise i.e. Mumbai, Thane, Pune, Nashik, Aurangabad, Latur, Amravati and Nagpur. When this process will be completed and whether online payment of stamp duty will be possible, is a distant dream.
According to Advocate Sanjeev Kanchan, 20,000 documents from the last Amnesty scheme are still pending for adjudication and clearance. For the current Amnesty scheme, till date 55,000 documents have been received. In Mumbai and Thane alone there are 50,000 housing societies. Even if it is estimated that 20 flats in one society and around 20,000 societies need conveyance, four lakh applications need to be handled by the Stamp Office. Anticipating that this mammoth task cannot be completed before 31st October, NGOs are demanding another extension upto 31st March 2009.

This Amnesty Scheme is the fourth such scheme. If corrective actions are not taken in time, it is likely that this scheme may also not get the desired success.

It is well known that Revenue Department and the Urban Development Department are headed by Narayan Rane, and the Chief is Minister, Vilasrao Deshmukh respectively. When Narayan Rane is busy in strengthening his vote bank visiting various districts and Vilasrao is busy in Europe for bringing investments into Maharashtra, who will look after the interests of common man?

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