An apartment in Bhubaneswar
Bhubaneswar: To streamline apartment registrations, the state govt on Thursday notified amendments to the Indian Stamp Act, 1899, through an ordinance, reducing the financial burden on apartment owners’ associations and removing procedural bottlenecks.The notification, published in the Odisha Gazette, follows state cabinet approval in Jan earlier this year and is likely to simplify the registration process under the Odisha Apartment (Ownership and Management) Act, 2023, while ensuring govt revenue is safeguarded. With the ordinance, decks are now clear for implementation of the stamp duty.Under the 2023 Act, developers need to transfer common areas and facilities such as corridors, lifts and community spaces to the Association of Allottees at the time of executing the first deed of conveyance. However, the earlier provision mandated payment of 5% stamp duty by the association, making the process financially unviable.To address the issue, the amendment introduces a nominal stamp duty of Rs 50,000 for executing the deed of conveyance for transfer of common areas in favour of the association, irrespective of the property value. This replaces the earlier duty structure that burdened apartment buyers collectively.At the same time, the govt has clarified that individual homebuyers will continue to pay a uniform stamp duty of 5% at the time of registration of their respective apartment units. This will include both the cost of the flat and the buyer’s undivided proportionate share in common areas.Officials said the reform is expected to resolve long-standing issues that left many buyers unable to complete registration due to the pending transfer of common areas. “The move will significantly ease the registration process and remove hurdles in use of common areas with associations,” a govt statement reads.The decision comes close on the heels of another related reform. In Dec last year, the state fixed a consolidated registration fee of Rs 20,000 under the Registration Act, 1908, for the transfer of common areas, further easing the overall cost burden on allottees’ associations.Real estate experts believe that the combined effect of these changes will unlock stalled registrations. “Though delayed by three years, it is a welcome and necessary step. Now, the registration can start for all those projects which have registered their Association, OC was issued and common areas are defined,” said real estate expert Bimalendu Pradhan.
