BHUBANESWAR: In an effort to simplify apartment registrations, the state government announced amendments to the Indian Stamp Act, 1899, via an ordinance on Thursday. This initiative aims to alleviate the financial pressures on apartment owners’ associations and eliminate procedural obstacles.
The announcement, published in the Odisha Gazette, follows the state cabinet’s green light earlier this January. The amendments are expected to streamline the registration process under the Odisha Apartment (Ownership and Management) Act, 2023, while protecting government revenue. With this ordinance, the framework for implementing the amended stamp duty is now in place.
Under the 2023 Act, developers are obliged to transfer shared areas and amenities—such as hallways, elevators, and communal spaces—to the Association of Allottees at the time of executing the initial deed of conveyance. However, the previous requirement mandated a 5% stamp duty from the association, rendering it financially impractical.
To mitigate this challenge, the amendment establishes a nominal stamp duty of Rs 50,000 for executing the conveyance deed for shared areas in favor of the association, irrespective of property value. This change alleviates the earlier duty structure that collectively burdened apartment buyers.
Simultaneously, the government clarified that individual homebuyers will still incur a uniform stamp duty of 5% upon registering their respective apartment units, which will encompass the cost of the flat plus the buyer’s proportional share in shared areas.
Officials indicate that this reform is set to address long-standing issues that prevented many buyers from completing their registrations due to delays in transferring common areas. “This initiative will greatly facilitate the registration process and eliminate barriers to accessing shared spaces within associations,” a government statement asserts.
This decision follows another significant reform implemented last December when the state established a consolidated registration fee of Rs 20,000 under the Registration Act, 1908, for the transfer of shared areas, further reducing the overall financial burden on allottees’ associations.
Real estate experts suggest that these changes will revive stalled registrations. “Although delayed by three years, this is a positive and essential step. Registration can now commence for projects that have registered their Association, received an OC, and defined common areas,” noted real estate expert Bimalendu Pradhan.
