Brace yourself as real estate in Mumbai set to get costlier

FPJ Web Desk

It’s no myth that the real estate in Mumbai is not cheap, but brace yourself as the state assembly’s decision to levy an additional one percent on stamp duty as a surcharge will pinch your pockets more.

According to Indian Express, Maharashtra Assembly passed a bill to levy a one percent surcharge on stamp duty for immovable property in Mumbai where crucial urban transport projects are being undertaken. As per the provisions of the Mumbai Municipal Corporation Act (second amendment) bill, the move is aimed at creating sufficient corpus for such projects.

The revenue generated from this will be used to fund projects like the Metro, the monorail, freeways and other public transport systems. The bill will now be placed before the legislative council for approval. Once approved, stamp duty (excluding registration fees) in Mumbai will increase to six percent of the property transaction amount, which means buying real estate will become more expensive.

The Maharashtra government which is already facing cash crunch has undertaken ambitious projects in Mumbai like nine Metro corridors, the coastal road and the Versova Bandra Sea Link (VBSL). These projects will cost whopping Rs 1 lakh crore or more. For this, the state government has sought Rs 50,000 crore from the 15th Finance Commission.