Joshi Govt To Decide On Stamp Duty On Mergers In March

The Maharashtra government will take a decision on the stamp duty on mergers and acquisitions (M&A) in the state after a fortnight.

State Chief Minister Manohar Joshi told a meeting organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) that a decision on the stamp duty on M&A can be announced only after March 5, when the electoral code of conduct will expire. He did not elaborate.

According to sources, the stamp duty which was levied at a flat rate of 10 per cent on the value of shares issued or allotted by the transferor company is being drastically cut. The new formula will levy 0.5 per cent on the share value or 5 per cent on immovable property in Maharashtra, whichever is higher.

Joshi was replying to a question raised by industrialist Ajay Piramal at the meet. There was a lot of confusion on the issue and a decision could be taken only after the corporation elections end in the state.

The state government was also about to take a decision on the sale of surplus land available with private textile mills in Mumbai but had to defer it due to the assassination of a trade union leader, Joshi said, in an obvious reference to the killing of Datta Samant. The entire issue had taken on political overtones, he added.

The state government had also acquired 100 acres of land to set up an international convention centre in Mumbai but he refused to disclose the location while conceding that reports about it had surfaced in a section of the press. The cabinet had already approved the plan and construction would start soon.

Joshi said the state government would always support Enron's power project and not the agitators protesting against it. He dismissed as political propaganda reports that Maharashtra was losing ground in attracting investment. He pointed out that a recent survey had indicated that Maharashtra scored over all other states on investment parameters.

The state would offer 55 proposals worth $5 billion to private and foreign investors at a global conference