Orissa cabinet approves reduction of stamp duty on apartments to 5%

With a view to discourage under-valuation of properties at the time of sale, the Orissa cabinet chaired by the chief minister Naveen patnaik today approved a proposal of the revenue and disaster management department to reduce the stamp duty on apartments and multi-storey buildings from existing 7 percent to 5 percent.

This will bring uniformity among the individual house and apartment owners in the state. The new rate of stamp duty will be effective from 5 August 2008.

Though the cabinet, in one of its earlier decisions, had decided to reduce the stamp duty in the state to 5 percent from 8 percent, the category of apartment owners was left out, creating some discrepancy in this regard. To remove this disparity, the cabinet today approved the proposal to reduce stamp duty applicable for apartments to 5 percent, T K Misra, Development Commissioner said.

G V V Sarma, revenue secretary said, the measure will ensure higher revenue with minimum hassles. It will also be effective in increasing overall revenue from registration of properties in the state.

The cabinet also approved an amendment in the Orissa Government Land Settlement Act allowing the Khasmahal lands in Angul, Talcher, Cuttack, Chandbali and Puri to be recorded in the name of the persons living on this land for a long time. Similarly, Nazul and Abadi land existing in western Orissa will also be settled as raiyati land permanently with right of transfer and inheritance.

An amendment to the Orissa Development Authority Act and Orissa Town Planning and Improvement Act, waiving the imposition of additional 3 percent town area surcharge collected at present, was approved by the cabinet. While 5 percent stamp duty collected in rural areas will go entirely to the state government, in the urban areas, 2 percent out of this 5 percent stamp duty will devolve to the urban development authorities. However, the 2 percent registration fee on the land deals will continue as before.

Misra said, the cabinet approved a proposal to give 7 acres of land free of premium to the public sector Punjab National Bank (PNB) at Korapali in Ganjam district for setting up of a farmers training centre. The proposed centre will be functional within 2 years, Misra added.

The other proposals which received the nod of the cabinet include amendment of the elementary cadre rule, 1997 enabling the government to recruit trained graduates for 40 percent of the posts in the elementary schools, amendment of the Orissa Education Act, 1969 allowing the government to extend grant in aid for class 1 to 5 in the Madrassas and Sanskrit tolls.

While an amendment to the CrPC act allowing the trial of the accused in the jails through video-conferencing after the first physical presence of the accused before the magistrate was approved by the cabinet, an amendment in the Orissa Municipal Corporation Act was given the green signal by it extending the period of complain by any elector about the irregularities in the expenditure return furnished by the candidates to 45 days from 15 days at present. The state government will issue ordinances for giving effect to these measures, Misra said.