The Maharashtra government has approved a major reduction in stamp duty for the registration of 99-year lease agreements of cooperative housing societies, a move expected to benefit thousands of residential societies across Mumbai and support redevelopment projects.
Announcing the decision in the Maharashtra Legislative Assembly, Revenue Minister Chandrashekhar Bawankule said that stamp duty on residential lease agreements has been capped at 0.5%, while commercial properties will attract a maximum duty of 1.5%. Previously, stamp duty on such lease agreements could go up to 5%, depending on lease terms, premium paid, and other factors.
The revised rates apply to cooperative housing societies situated on leasehold land and are expected to help societies that have been unable to register lease agreements due to high costs and procedural delays. The concession will benefit societies in Mumbai city and suburban areas, including Nariman Point, Colaba, Cuffe Parade, Marine Drive and several suburban locations.
According to the government, the reduction will significantly lower the financial burden on housing societies. Illustrative examples shared by the Revenue Department show substantial savings. The stamp duty payable by Mittal Chambers Owners Cooperative Society is expected to reduce from approximately ₹101.21 crore to ₹10.68 lakh. Similarly, New Maker Chambers’ liability will decline from ₹119.47 crore to ₹1.76 crore, while Sea Lot Cooperative Housing Society’s duty will reduce from ₹176.82 crore to ₹27.05 lakh.
Mumbai has a large number of cooperative housing societies built on leasehold land, where the land is owned by government agencies such as MHADA, CIDCO, MMRDA, or private landowners, while societies hold long-term lease rights. Registration of lease agreements is essential for establishing legal title, obtaining redevelopment approvals, securing finance and facilitating property transactions.
The government believes the decision will also accelerate redevelopment of ageing buildings across Mumbai. Lower stamp duty is expected to reduce upfront costs for societies and developers, improving the financial feasibility of redevelopment projects and helping expedite the renewal of old residential buildings.
The policy is expected to provide long-term relief to cooperative housing societies while supporting redevelopment activity and improving the ease of property transactions in Mumbai’s leasehold housing sector.
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