Maharashtra Waives Stamp Duty on ‘Enemy Properties’ to Boost Auction Participation

Mumbai: The Maharashtra government has taken a significant step to boost the participation in the auction of so-called ‘enemy properties’ by waiving the stamp duty registration charges. This decision was made during a state cabinet meeting on Tuesday.

Enemy properties are assets that belong to individuals who migrated to countries that India considers hostile, primarily Pakistan and China, following conflicts with these nations. After the 1965 India-Pakistan war, the Indian parliament enacted the Enemy Property Act, 1968. Under this act, such properties were vested in the Custodian of Enemy Property for India (CEPI), an authority under the Ministry of Home Affairs. The legislation explicitly prohibits enemy nationals and their heirs from transferring, selling, or inheriting these properties.

In 2017, the Act was amended to allow CEPI to sell or dispose of enemy properties with prior approval from the central government. These sales are typically conducted through e-auctions, where tenders are invited, or quotations are obtained. However, officials from the state revenue department noted that the response to these auctions has been limited so far.

“The decision to waive off stamp duty would reduce the cost of the property and subsequently encourage greater participation in auctions,” said a senior official. This decision was taken following a request from CEPI to the state government, the official added.

Maharashtra, which has a significant number of enemy properties, has a total of 428 such assets. Out of these, 239 are located in Mumbai alone. Specifically, 62 of these properties are in the island city, while 177 are in the suburbs. In other parts of the state, there are 86 in Thane, 77 in Palghar, 11 in Ratnagiri, 6 in Nagpur, 4 in Pune, 2 in Chhatrapati Sambhajinagar, 2 in Jalna, and 1 in Sindhudurg.

This move is expected to make these properties more attractive to potential buyers, thereby increasing the revenues generated from their sale. The government hopes that this initiative will not only boost the economy but also ensure that these properties are utilized more effectively.