Maharashtra Tightens Penalties for Stamp Duty Violations in Property Deals

Pune, 10th March 2026: The Maharashtra government has increased the penalty for executing property documents with insufficient stamp duty to Rs 1 lakh, with the revised rule coming into force from January 1, 2026.

Officials from the Office of the Inspector General of Registration (IGR) stated that the amendment was officially notified on December 31, 2025, and applies to all cases registered by the department from the beginning of this year where a shortfall in stamp duty is detected.

The provision was also highlighted by Chief Minister Devendra Fadnavis during the presentation of the Maharashtra Budget 2026–27 on March 6. He announced that the state government had decided to raise the penalty for property registration documents executed without adequate stamp duty from the earlier Rs 5,000 to Rs 1 lakh.

According to officials, the revised penalty will apply to cases identified from January 2026 onwards. Authorities are currently reviewing transactions that may fall under the updated provisions.

The change has been introduced through amendments to Sections 59, 60, 63A, and 68A of the Maharashtra Stamp Act, which deal with offenses related to the execution of documents without proper stamp duty.

Under the updated provisions, individuals found to have executed or signed documents requiring stamp duty without paying the full amount may face legal action. Upon conviction, offenders can be punished with imprisonment ranging from one to six months, a fine of up to Rs 1 lakh, or both.

Officials said the stricter penalty has been introduced to discourage deliberate underpayment of stamp duty during property transactions and to strengthen enforcement against such violations. The move is expected to ensure that the state’s revenue from stamp duty is not compromised and that the property market operates more transparently and fairly.

The Maharashtra government has been proactive in addressing issues related to property transactions and ensuring compliance with legal requirements. This latest amendment is part of a broader strategy to modernize and regulate the real estate sector, making it more accessible and trustworthy for all stakeholders.

The increased penalty is expected to have a significant impact on the behavior of property buyers and sellers, as well as real estate agents and legal professionals. It is hoped that this will lead to more accurate and fair property valuations, ultimately benefiting the overall real estate market in Maharashtra.