Good news for aspirants of buying an old property, the Bombay High Court decreed this week that stamp duties which have been due on old and unregistered properties, cannot be levied by the collector as a retrospective measure. Related to an ongoing case where a 3000+ sq. ft. apartment attracted a stamp duty of ₹2 Cr. the new buyer filed a case against the seller demanding them to pay off the government dues before the transfer of property. After which, the seller held the state accountable for imposing laws which didn't exist at the time of the last transaction i.e. in 1979.

The judge, Justice Gautam Patel, favoured homebuyers in his landmark judgement saying that it should not be the buyers' responsibility to clear off archaic dues. Rather the state should not levy duties upon the properties older than the law, ruling against the retrospective treatment.

Our opinion

While it is great news for people either buying or selling a pre-owned property, it does not seem to affect the primary residential market at all. Since the majority of occupied buildings are covered under the amendment to the Maharashtra Stamp Act, 1985, the purview of this judgement would be quite streamlined. It would have a little or no impact on the buildings currently ready for occupation.

Source