L. A. BILL No. XXXVII OF 2021.

A BILL

further to amend the Maharashtra Stamp Act.

WHEREAS it is expedient further to amend the Maharashtra Stamp

Act for the purposes hereinafter appearing; it is hereby enacted in the

Seventy-second Year of the Republic of India, as follows:—

This Act may be called the Maharashtra Stamp (Amendment) Act,

2021.

In SCHEDULE I appended to the Maharashtra Stamp Act,—

(1) in article 6,—

(a) in clause (1), in sub-clause (b), in column (2),—

(i) for the words “ten lakh rupees” the words “twenty lakh

rupees” shall be substituted;

Short title.

Amendment of

SCHEDULE I

of LX of 1958.

LX of

1958.

LX of

1958.

RNI No. MAHBIL /2009/40123

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MAHARASHTRA LEGISLATURE SECRETARIAT

The following Bill was introduced in the Maharashtra Legislative Assembly on the

23rd December, 2021 is published under Rule 117 of the Maharashtra Legislative

Assembly Rules :—

(1)

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(ii) the following proviso shall be inserted, namely:–

“Provided that, in case of instrument executed in favour

of consortium of banks, the duty chargeable shall not exceed

fifty lakh rupees.”;

(b) in clause (2), in sub-clause (b), in column (2),—

(i) for the words “ten lakh rupees” the words “twenty lakh

rupees” shall be substituted;

(ii) the following proviso shall be inserted, namely:–

“Provided that, in case of instrument executed in favour

of consortium of banks, the duty chargeable shall not exceed

fifty lakh rupees.”;

(2) in article 33, in clause (b), for sub-clause (ii), the following sub-

clause shall be substituted, namely:—

“(ii) if possession is not so given,–

(A) if the amount of further

0.1 per cent. of the amount of

charge secured by such deed

further charge secured by such

does not exceed rupees

deed, subject to minimum of one

five lakhs,

hundred rupees;

(B) in any other case,

0.3 per cent. of the amount of

further charge secured by such

deed, subject to maximum of

twenty lakh rupees.”;

(3) in article 40, in clause (b), in sub-clause (ii), in column (2),—

(i) for the words “ten lakh rupees” the words “twenty lakh

rupees” shall be substituted;

(ii) the following proviso shall be inserted, namely:—

“Provided that, in case of instrument executed in favour of

consortium of banks, the duty chargeable shall not exceed fifty lakh

rupees.”;

(4) for article 41, the following article shall be substituted,

namely :–

“41. MORTGAGE OF CROP,

including any instrument

evidencing an agreement to

secure the repayment of a loan

made upon any mortgage of a

crop whether the crop is or is

not in existence at the time

of mortgage,—

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(i) if the amount secured by

0.1 per cent. of the amount

such deed does not exceed

secured by such deed, subject

rupees five lakhs,

to the minimum of one

hundred rupees;

(ii) in any other case,

0.3 per cent. of the amount

secured by such deed, subject

to the maximum of twenty

lakh rupees.”;

(5) for article 54, the following article shall be substituted, namely :–

“54. SECURITY BOND OR

MORTGAGE DEED, where

such security bond or mortgage

deed is executed by way of

security for the due execution

of an office, or to account for

money or other property

received by virtue thereof, or

by a surety to secure the due

performance of a contract, or

in pursuance of an order of

the court or a public officer,

not being otherwise provided

for by the Maharashtra

Court-fees Act,—

(i) if the amount secured by

0.1 per cent. of the amount

such deed does not exceed

secured by such deed, subject

rupees five lakhs,

to the minimum of one hundred

rupees;

(ii) in any other case,

0.3 per cent. of the amount

secured by such deed, subject to

the maximum of twenty lakh

rupees:

Provided that, where on

an instrument executed by a

person for whom a person

stands surety and executes

security bond or a mortgage

deed, duty has been paid under

article 40, then the duty

payable shall be one hundred

rupees.”.

XXXVI

of 1959.

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Exemptions

Bond or other instrument,

when executed,—

(a) by any person for the

purpose of guaranteeing that

the local income derived from

private subscriptions to a

charitable dispensary or

hospital or any other object

of public utility shall not be

less than a specified sum per

mensem ;

(b) under the rules made by

the State Government under

section 114 of the Maharashtra

Irrigation Act, 1976 ;

(c) by a person taking advance

under the Land Improvement

Loans Act, 1883 or the

Agriculturists Loans Act, 1884

or by their sureties as security

for the repayment of such

advances ;

(d) by officers of the Government

or their sureties to secure the due

execution of an office or due

accounting for money or

other property received by

virtue thereof.

XII of

1884.

Mah.

XXVIII

of 1976.

XIX of

1883.

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STATEMENT OF OBJECTS AND REASONS

The stamp duty chargeable on the instrument evidencing mortgage by

deposit of title deeds chargeable under article 6 of Schedule I appended to

the Maharashtra Stamp Act (LX of 1958) was less than the simple mortgage

deed chargeable under article 40 of the said Schedule before commencement

of the Maharashtra Stamp (Amendment and Validation) Act, 2021 (Mah. III

of 2021) (hereinafter referred to as “the said amending Act”). Therefore, by

the said amending Act, the stamp duty chargeable on the instruments of

mortgage by deposit of title deeds and simple mortgage deed under the said

articles 6 and 40, respectively, have been made uniform. To accommodate

revenue deficit due to the said amendment, maximum stamp duty limit of

rupees ten lakh is specified in the said articles 6 and 40 needs to be increased

to rupees twenty lakh.

In view of the judgement of the Hon’ble Supreme Court in the case

of Chief Controller Revenue Authority, Gujarat Vs. Coastal Gujarat Power

Limited (Civil Appeal No. 6054 of 2015), section 5 of the said Act have been

amended by the said amending Act with a view to levy stamp duty in respect

of any instrument comprising or relating to several distinct transactions.

Due to this amendment of section 5, in case of instrument of mortgage by

consortium of banks, each bank is liable to pay stamp duty in respect of an

amount secured by such deed subject to maximum of ten lakh rupees. The

Government, therefore, considers it expedient to specify maximum ceiling

of stamp duty of rupees fifty lakh in case of instrument related to mortgage

executed in favour of consortium of banks so as to support the industrial and

commercial sector and to encourage timely payment of stamp duty.

The Government also considers it expedient to amend certain

ancillary articles to articles 6 and 40 in respect of mortgage such as article 33

(further charge on mortgage property), article 41 (mortgage of crop) and article

54 (security bond or mortgage deed) to harmonize the levy of stamp duty in

respect of mortgage under the said Act.

The Bill seeks to achieve the above objectives.

Mumbai,

BALASAHEB THORAT,

Dated the 20th December, 2021.

Minister for Revenue.

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FINANCIAL MEMORANDUM

Clause 2 of the Bill proposes to amend articles 6, 33, 40, 41 and 54 in

Schedule I of the Maharashtra Stamp Act (LX of 1958), with a view to harmonize

the levy of stamp duty in respect of mortgage under the said Act. There is no

provision in the Bill which would involve the recurring or non-recurring

expenditure from the Consolidated Fund of the State on its enactment as an

Act of the State Legislature.

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GOVERNOR’S RECOMMENDATION UNDER ARTICLE 207 OF

THE CONSTITUTION OF INDIA

(Copy of Government of Maharashtra Order, Law and Judiciary

Department)

In exercise of the power conferred upon him by clause (1) of Article 207

of the Constitution of India, the Governor of Maharashtra is pleased to

recommend to the Maharashtra Legislative Assembly, the Introduction of

the Maharashtra Stamp (Amendment) Bill, 2021.

Vidhan Bhavan :

RAJENDRA BHAGWAT,

Mumbai,

Principal Secretary,

dated the 23rd December 2021.

Maharashtra Legislative Assembly.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,

RUPENDRA DINESH MORE, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD,

MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS,

21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004. EDITOR : DIRECTOR, RUPENDRA DINESH MORE.