On December 17, 2018, pursuant to receipt of the consent of the governor of Maharashtra, the Mumbai Municipal Corporation (Second Amendment) Act, 2018 (“Amendment Act”) was published in the Gazette.
The Amendment Act inserted section 144F in the Mumbai Municipal Corporation Act, 1888, whereby the stamp duty leviable under the Maharashtra Stamp Act, on the instruments of sale, gift and usufructuary mortgage of immovable property shall, in the case of any such instrument relating to immovable property situated in the area of Brihan Mumbai Municipal Corporation (“BMC”) in which one or more Vital Important Urban Transport Projects (“City having notified projects”) and executed on or after such date as may be notified by the State Government, be increased by a surcharge at the rate of 1% (one percent). The aforesaid surcharge will, in case of instrument of sale or gift, be on the value of the property so situated, and in case of an instrument of usufructuary mortgage, be on the amount secured by the instrument and shall be collected accordingly under the Maharashtra Stamp Act.
Further, the amount of additional duty realized on account of surcharge levied and collected under this section in respect of the immovable properties situated in the City having notified projects shall be appropriated towards a grant-in-aid approximately equal to such amount of additional duty by the State Government every year and shall be utilised on such notified projects in the manner specified by the Government. The aforesaid sum of money required to meet the expenditure by the State Government shall be charged on the Consolidated Fund of the State.
Further, “notified project” has been defined as follows:
“Vital Important Urban Transport Project related to Mass Rapid Transport System such as Metro Rail, Mono Rail, Bus Rapid Transport System and includes Freeway, Sea-link, etc., in respect of which the State Government has, by notification in the Official Gazette, declared its intention to undertake such project either by itself or through the planning authority, a New Town Development Authority, and other statutory authority, an agency owned and controlled by the Central Government or the State Government or a Government Company incorporated under the provisions of the Companies Act, 2013 or any other law relating to companies for the time being in force.”
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