Mumbai, November 28: At a time when real estate was making a recovery, the Maharashtra government cleared a bill to increase stamp duty by one per cent, a move to fund major transport projects like metro and monorail, freeways, bus rapid transport system (BRTS) and sea links. This step by will push up the stamp duty to 6 per cent from the current 5 per cent, making the properties expensive in the city. Mumbai: Buildings at Marine Drive Not to Rise Beyond 24 Metres; BMC To Wait For SC's Order.

The bill was passed on Tuesday in the legislative assembly without any discussions, similarly, eight other bills were passes concerning over the reservation of Maratha Community. Before signing into law, the bills will go to the governor and the council for review. This move from state government will help them to generate more than Rs 1000 crore in revenue. Mumbai: BMC Imposes 10 Per Cent Cut in Water Supply As City’s Water Stock Dips to 77%.

In its statement of reasons, the bill said, "it is considered expedient to levy a surcharge by way of the stamp duty leviable on the instruments of sale, gift and usufructuary mortgage of immovable property within BMC." It further notified that it is an essential step for urban Infrastructure's funding.

It is important to note that Mumbai is one of the fastest growing real estates in the country, and despite the slowdown in India's real estate sector, the property rates in the financial capital have not moderated as buyers and investors would have liked.

(The above story first appeared on LatestLY on Nov 28, 2018 12:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).