The Odisha government has notified amendments to the Indian Stamp Act, 1899, through an ordinance, streamlining apartment registrations and reducing the financial burden on apartment owners' associations. The notification, published in the Odisha Gazette on Thursday, follows state cabinet approval in January this year and is expected to simplify the registration process under the Odisha Apartment (Ownership and Management) Act, 2023, while safeguarding government revenue.
Key Changes in Stamp Duty
Under the 2023 Act, developers are required to transfer common areas and facilities—such as corridors, lifts, and community spaces—to the Association of Allottees at the time of executing the first deed of conveyance. However, the earlier provision mandated payment of 5% stamp duty by the association, making the process financially unviable. To address this, the amendment introduces a nominal stamp duty of Rs 50,000 for executing the deed of conveyance for transfer of common areas, irrespective of the property value. This replaces the earlier duty structure that collectively burdened apartment buyers.
Meanwhile, the government has clarified that individual homebuyers will continue to pay a uniform stamp duty of 5% at the time of registration of their respective apartment units. This includes both the cost of the flat and the buyer's undivided proportionate share in common areas.
Impact on Registration Process
Officials stated that the reform is expected to resolve long-standing issues that left many buyers unable to complete registration due to the pending transfer of common areas. A government statement noted, "The move will significantly ease the registration process and remove hurdles in use of common areas with associations."
This decision follows another related reform in December last year, when the state fixed a consolidated registration fee of Rs 20,000 under the Registration Act, 1908, for the transfer of common areas, further easing the overall cost burden on allottees' associations.
Expert Reactions
Real estate experts believe that the combined effect of these changes will unlock stalled registrations. Bimalendu Pradhan, a real estate expert, commented, "Though delayed by three years, it is a welcome and necessary step. Now, the registration can start for all those projects which have registered their Association, OC was issued and common areas are defined."
The ordinance effectively clears the decks for implementation of the revised stamp duty structure, paving the way for smoother apartment registrations across Odisha.
