Contradictory policies make Stamp Duty waiver a distant dream for investors

By Niraj Chinchkhede

It seems that the policy makers’ stand on the grave issue of industrial growth of the State is not very firm. On one hand, they announce incentives to pretend that everything is being done to attract investments while on the other hand they simply pour cold water over the efforts of those who set up industries in the State.

The best example of this dual policy is the Stamp Duty waiver scheme of the Maharashtra Government which is proving a big hurdle in the process of industrial growth.

Under the Package Scheme of Incentives - 2019, valid till March 31, 2024, the Maharashtra Government has declared Stamp Duty exemption.

To promote industrial development, the Ministry of Industries, Government of Maharashtra has specifically incorporated in its GR dated September 16, 2019 that new units as well as units undertaking expansion or diversification will be exempted from payment of Stamp Duty for acquiring land including assignment of lease rights and sale certificate and also on term loan from financial institution.

Going by the scheme, all the industrial units are eligible for the Stamp Duty waiver which is 5 to 6 per cent of the total land cost. But there is another Gazette Notification of the Maharashtra’s Department of Revenue which clarifies that the benefit of Stamp Duty exemption will not be available in case of unit to unit transfer of leased land.

These two contradictory policies are not just reflecting the casual approach of the Government, but also creating a sense of confusion among the investors and eventually affecting the pace of industrial growth in the State. Moreover, it is creating a sense of dejection among the entrepreneurs who wish to acquire sick units to revive it. In fact, it is causing utter hardship to the entrepreneurs who are in the process of acquiring MIDC plots on a unit to unit transfer basis. It is worth mentioning here that a significant number of entrepreneurs of the region could not avail the Stamp Duty benefits in the recent past.

CA Julfesh Shah, leading industrial consultant and Chairman of COSIA Vidarbha, termed the matter ‘absurd and contradictory’. “Many entrepreneurs here are running from pillar to post to avail the benefits of Stamp Duty but the Revenue Department authorities are rejecting their proposal even after the approval of the Industry Department,” he pointed out. However, when contacted Joint District Registrar and Collector of Stamps, Nagpur (Rural) S A Tarase told The Hitavada that there is no confusion on the matter. “The exemption was available till 2019. But now the Government has discontinued it and it is specifically mentioned in the GR,” he said.

In the meanwhile, President of Vidarbha Industries Association Suresh Rathi said, the all entrepreneurs should get the benifit of Stamp Duty exemption. “It will be not only a big encouragement for the entrepreneurs but also give much needed boosts to the industrial growth in Vidarbha,” he added.