In a major pre-election decision, the Maharashtra government has waived stamp duty and registration fees for residents of old buildings who receive new homes under Mumbai’s cluster redevelopment scheme. The waiver applies to all eligible beneficiaries receiving apartments between 400 sq ft and 600 sq ft, according to an order issued on November 18 by the Inspector General of Registration and Controller of Stamps.
State Revenue Minister Chandrashekhar Bawankule said the move will ease the financial burden on Mumbai residents and accelerate long-pending redevelopment projects across the city. Cluster redevelopment combines multiple ageing or unsafe buildings into larger, modern housing complexes with improved infrastructure and safety standards.
Previously, residents had to pay full stamp duty and registration charges on the additional area they received after redevelopment, calculated based on construction cost or ready reckoner rates. Under the new rules, the combined valuation of the original flat area, extra space, and construction area will now be assessed at a concessional rate.
Officials noted that for a smaller cluster project covering 4,000 sq m, developers will save around ₹21.14 lakh in stamp duty. For a larger project on 50,000 sq m, the waiver could amount to as much as ₹4.36 crore, significantly improving project viability.
Bawankule’s office said the policy is expected to revive stalled redevelopment plans and encourage faster transformation of Mumbai’s ageing housing stock.
Meanwhile, political reactions have begun. Mumbai Congress spokesperson Sachin Sawant claimed the decision proves the BMC elections are nearing, accusing the BJP of announcing welfare steps only before polls. “If people want decisions like this, they must wait for elections,” he remarked.