Maharashtra Govt Approves Stamp Duty Concessions for Dharavi Redevelopment SPV

The Maharashtra cabinet has approved a proposal to offer stamp duty concessions on lease agreements between the Special Purpose Vehicle (SPV) formed for the Dharavi Redevelopment Project and various related government bodies.

The move aims to expedite the implementation of this large-scale rehabilitation and redevelopment initiative in one of Asia’s largest slum clusters, the Chief Minister's Office (CMO) said in a statement on June 17.

The decision was taken at a meeting chaired by Chief Minister Devendra Fadnavis. An SPV has been set up for the integrated redevelopment of Dharavi, a sprawling slum settlement in central Mumbai. The project is a joint venture between the Maharashtra government and the Adani Group.

The Dharavi project has already been designated a vital urban infrastructure and special project, qualifying it for such concessions, the statement said. The concession applies to sub-lease agreements involving the Railway Land Development Authority (RLDA), Delhi, the Dharavi Redevelopment Project SPV, and the Slum Rehabilitation Authority (SRA), Mumbai. These agreements have now been officially included under the state’s stamp duty relief policy to facilitate smoother execution.

The redevelopment is being carried out by a special purpose vehicle (SPV) set up through a joint venture between the Maharashtra government’s Slum Rehabilitation Authority (SRA) and the Adani Group’s Dharavi Redevelopment Project Private Limited (DRPPL), now known as Navbharat Mega Developers Private Limited (NMDPL). In this SPV, Adani Properties Private Limited (APPL) holds an 80 per cent stake, while the SRA holds the remaining 20 per cent. The Adani Group won the bid for Dharavi redevelopment in November 2022.

In a parallel decision, the Maharashtra cabinet approved a 50% stamp duty concession on land agreements related to the Raigad Pen Growth Centre project, a joint initiative between the Mumbai Metropolitan Region Development Authority (MMRDA) and Raigad Pen Growth Centre Ltd. The growth centre is located in Pen taluka near Mumbai and falls within the New Town Development Authority limits of the MMRDA. The project for which a stamp duty concession is being granted involves registering 1,217.71 acres of land in the name of a special purpose vehicle.

Once completed, the growth centre will feature fintech parks, education and healthcare hubs, entertainment zones, affordable housing, retail spaces, and commercial clusters. According to the statement, the project in Pen is based on global urban planning standards and executed under a public-private partnership (PPP) model. It is expected to attract significant foreign investment and generate large-scale employment opportunities. The state expects long-term gains through higher stamp duty and tax revenues, which prompted the decision to offer a 50% concession on stamp duty.