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Wednesday, August 20, 2008

Chaos reigns at Bandra stamp duty office

Nauzer Bharucha I TNN

Mumbai: Chaos reigned at the stamp duty office in Bandra (E) on Wednesday as more than 500 people, who had lined up for several hours to take advantage of the government's amnesty scheme, were asked to come back another day because the staff was unable to handle the load.The confusion and lack of clarity in the entire process of paying stamp duty could now force the state to extend the deadline beyond September 8, said sources.Eyewitnesses said there were long queues on Wednesday; which extended outside the MMRDA building where the stamp duty office is located on the first floor.

"We had been standing for over three hours when an officer announced that the department could handle just 150 people a day; including 25 women applicants and another 25 senior citizens," said T K Srinivasan from Malad."Women and senior citizens then stood in separate queues, but we came out without submitting our forms.Many people wasted their time because of the incompetence of the department," he fumed.Some angry applicants broke the line to enter the office.K V Bandekar, who represents 141 members of Evershine Nagar in Malad, said till 1 pm, the application forms of barely 30 people had been processed. "The infrastructure and staff are inadequate to handle such a rush. People have to take leave from work to do these things," he said.


AMNESTY SCHEME
R A Saluja said he reached the office at 9.30 am but people were made to "stand like beggars". "The department will not be able to handle this load. The government will have to extend the amnesty scheme," he said. ' TO! had reported about
thousands of flat owners queuing up to take advantage of the scheme, but were made to run around because of lack of clarity in its implementation.Under the scheme, which commenced in June, flat owne'rs have time till September 8 to pay stamp duty at the rate applicable on the date on which the property was bought.Advocate Vinod Sampat clarified that the authorities cannot levy stamp duty of more than Rs 20 for "years prior to 10/12/1985" if the parties have not executed a conveyance. "Section 17 of the Bombay Stamp Act lays downs that the valuation can be taken of the date on which the transaction has taken place."


The circular dated 10/08/2008 stipulates that according to the high court judgment in the case of Padma Nair vs collector; state of Maharashtra, stamp duty cannot be charged as on a conveyance prior to 10/12/1985," he said.Under the scheme, people who evaded stamp duty can regularise their transactions through a token penalty of Rs 500 for stamp duty of Rs 25,000 and Rs 1,000 for stamp duty over Rs 25;000. After it expires, residents will have to pay a penalty of 2 % on the total duty amount per month from the date of purchasing the flat, the maximum being 200%.

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