Panaji: State govt has decided to introduce the Indian Stamp (Goa Amendment) Bill 2026 in the Goa legislative assembly to implement the Mhajo Flat Scheme, aimed at safeguarding flat owners’ interests and addressing issues related to apartment ownership and redevelopment.The decision followed the Governor’s return of the ordinance after he observed that the legislative assembly had been summoned.Chief minister had announced the Mhajo Flat Scheme, which envisages interventions by the revenue, law and cooperation departments to provide relief to flat owners, ensure security of tenure, remove procedural difficulties and facilitate redevelopment.A senior govt officer said one issue concerns redevelopment of old housing societies. In many cases, a housing society enters into a registered development agreement with a developer for redevelopment of the entire property, on which stamp duty is paid. Subsequently, the developer executes individual agreements with each society member, setting out the terms for the allotment of a redeveloped flat in place of the existing one. Such agreements generally do not create independent rights but are ancillary to the principal arrangement.However, these individual agreements are presently subject to separate stamp duty, imposing an additional burden on flat owners. It has been represented that in several other states, only the principal redevelopment instrument is charged stamp duty equivalent to conveyance, while subsidiary agreements forming part of the transaction attract nominal fixed duty.The officer said concerns have also been raised about development agreements authorising developers to construct, market, sell, or transfer units. Such agreements are charged stamp duty equivalent to conveyance. Thereafter, if a power of attorney is executed between the same parties for the same property to facilitate implementation of the development agreement, it is again subjected to stamp duty equivalent to conveyance.Stakeholders, including CREDAI, have represented that this results in duplication of stamp duty on instruments forming part of the transaction. Several states have adopted provisions under which, once conveyance-equivalent stamp duty is paid on either the development agreement or power of attorney, the subsequent instrument is charged only nominal duty.The issues have increased transaction costs, burden, impediments to redevelopment and delays in housing schemes. Since redevelopment of dilapidated buildings is essential for ensuring safe housing and urban infrastructure, govt considers it necessary to rationalise the stamp duty structure.“Accordingly, as part of the Mhajo Flat Scheme, it was proposed to amend the Indian Stamp Act,” a senior govt officer said.
