Maharashtra Govt Waives Stamp Duty on Enemy Property Auctions: A Boost for Monetisation

In a significant move aimed at reviving stalled auctions and improving the monetisation of “enemy properties,” the Maharashtra cabinet has approved a waiver of stamp duty on the first registration of such properties sold through the Custodian of Enemy Property for India (CEPI). The decision was taken at a state cabinet meeting chaired by Chief Minister Devendra Fadnavis. The waiver will apply only at the stage of first registration after CEPI issues the sale certificate to successful bidders.

Enemy properties are assets left behind by individuals who migrated to enemy countries during wartime, especially to Pakistan and China. These properties are managed, preserved, and disposed of by CEPI under the provisions of the Enemy Property Act, 1968, which authorises the custodian to auction such assets.

According to official data, Maharashtra has a total of 428 enemy properties spread across multiple districts. Mumbai city accounts for 62 such properties, while Mumbai Suburban leads the tally with 177. Thane has 86 properties, Palghar 77, Ratnagiri 11, Pune four, Nagpur six, Chhatrapati Sambhajinagar two, Jalna two, Sindhudurg one, and Ratnagiri eleven. The tally of 428 properties also includes some agricultural lands.

Despite regular auctions conducted by CEPI, response from buyers has remained muted, primarily due to high acquisition costs, including stamp duty at the time of registration. To address this concern, CEPI had approached the state revenue department with a proposal seeking exemption from stamp duty on first-time registration, arguing that such relief would make purchases financially viable and attract wider participation.

The state government accepted the proposal, noting that reduced transaction costs could significantly improve auction outcomes and help unlock the value of these long-idle assets. With stamp duty waived at the initial registration stage, buyers are expected to show greater interest, thereby accelerating the disposal of enemy properties across the state.

Officials said the measure is intended to streamline the sale process while ensuring better realisation for properties that have remained unsold for years. The exemption is expected to provide a much-needed push to CEPI’s auction efforts, particularly in high-value urban pockets such as Mumbai, Thane, and Palghar.

The move also aligns with the government’s broader objective of improving asset monetisation and easing procedural hurdles in property transactions. Revenue department sources indicated that detailed operational guidelines for implementing the waiver will be issued shortly.

Interestingly, the state government of Maharashtra is also interested in acquiring a few properties. Despite continuous follow-up with the center, the center has yet to take any decision. With Maharashtra holding one of the largest concentrations of enemy properties in the country, the cabinet’s decision is seen as a practical step to bring dormant real estate back into circulation and generate economic activity, while providing clarity and relief to prospective buyers.