Maharashtra Waives Stamp Duty To Unlock Idle Urban Land
Maharashtra has moved to stimulate one of its most dormant segments of the real estate market by waiving stamp duty and registration charges on “enemy property” transactions, a strategic push to unlock underutilised land assets and attract fresh investment. The policy, approved by the state cabinet, aims to reduce acquisition costs and enhance participation in auctions for assets that have largely sat idle under custodial management for decades.
Enemy properties, as defined under India’s Enemy Property Act, 1968, are immovable assets originally left behind by individuals who migrated to countries categorised as hostile — primarily Pakistan and China — during historical conflicts. These assets are vested with the Custodian of Enemy Property for India (CEPI) and can be sold only with central government approval through e-auctions or other formal mechanisms. However, despite reforms in 2017 that opened avenues for disposal, bidder interest has remained limited, partly due to transaction costs including stamp duty and registration levies.The Maharashtra government’s stamp duty waiver — applicable on the first sale and purchase of enemy properties and approved at a recent cabinet meeting — effectively removes a six per cent cost burden on buyers, making auctions more financially attractive for developers, institutional investors and high-net-worth individuals. Analysts suggest that this reduction could spark a much-needed revival in bidding activity, particularly in urban centres where concentrations of such assets have languished.
Maharashtra holds one of India’s largest inventories of enemy properties, with over 400 assets statewide. Mumbai alone accounts for more than half of this stock, with both island city and suburban plots on offer. Other districts such as Thane, Palghar, Pune and Nagpur also feature on the list, indicating geographies with latent redevelopment potential.Urban planners note that many of these parcels, if brought into productive use, could meaningfully contribute to residential and mixed-use development pipelines without the need for fresh land acquisition, helping to alleviate pressure on existing urban footprints. Reducing initial transaction costs could also help institutional buyers rationalise investment decisions against rising construction and compliance costs across Maharashtra’s major cities. Industry observers note that the waiver aligns with broader efforts to improve liquidity in government-held real estate and reduce administrative overhead in property management.
However, the policy’s success will depend on buyer confidence and legal clarity. Uncertainties around titles, legacy encumbrances and procedural compliance have historically dampened auction participation. To maximise the reform’s impact, authorities may need to couple fiscal incentives with enhanced transparency and streamlined clearance processes, including clear pathways for development approvals once assets are sold.For urban markets already grappling with land scarcity and affordability pressures, unlocking these idle properties could expand development corridors and generate economic activity. As the next auction cycles unfold, developers, investors and civic planners will be watching closely to assess whether the stamp duty waiver translates into tangible market activation and responsible land use outcomes.
