The increased penalty of Rs1 lakh for the execution of property documents lacking adequate stamp duty will take effect from January 1 of this year. “The amendment that raises the penalty was officially announced on December 31, 2025. It is set to be enforced starting January 1, 2026.
Any cases filed by the department concerning a deficiency in stamp duty after this date will be subject to the updated penalty regulations,” stated an official from the Inspector General of Registration (IGR) office on Monday.
Chief Minister Devendra Fadnavis emphasized this change during the presentation of the Maharashtra Budget for 2026-27 on March 6. He indicated that the government intended to increase the penalty for executing property registration documents with inadequate stamp duty to Rs1 lakh from the current Rs5,000.
The IGR official mentioned that the new penalty would apply to cases arising this year from January. “We are currently evaluating the cases that will fall under the new regulations,” he remarked. The updated penalty includes amendments to sections 59, 60, 63A, and 68A of the Maharashtra Stamp Act, which address penalties for instruments executed without sufficient stamp duty.
The penal provisions within the Maharashtra Stamp Act stipulate rigorous imprisonment and fines upon conviction if an instrument is executed with insufficient stamp duty. Officials noted that the amended provisions would enhance measures against intentional underpayment of stamp duty on property documents and other instruments.
According to the revised rules, any individual who, with the intent to evade duty, executes or signs an instrument subject to stamp duty without it being properly stamped may, upon conviction, face imprisonment for a term ranging from one to six months, or a fine of up to Rs1 lakh, or both. Officials indicated that this change aims to reduce instances where parties intentionally executed agreements or other instruments with lower stamp duty than what is required.
