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rohit singh   10 November 2022

Stamp duty in paa agreement

Dear Sir , I have been residing in a pagadi system Building in parel Mumbai  since my birth along with my family we have been continuous occupation of the said property since 1942 . In 2007 our Building was brought over by a Builder group which started the redevelopment process in 2010 , during that time in Mhada Annexure my Mothers name was given as occupant . For 12 years the redevelopment was stalled  this year builder restarted the process , at the time of registration of the Agreement with Stamp duty registrar in worli  , the registrar refused to register the Agreement under my name saying mother's name in annexure of mhada list of occupants , if you need to register in your name you have to register by paying stamp duty  , i had no option but to register by paying the duties at Ready recknor rate ..

I need to understand from Eminent Lawyers with expertise on this issue  as i had the NOC of my family members , rent receipt on my name , school leaving certificate , and birth certificate , ration card to show my occupancy still the house was not registered in my name i need to understand if  paying duty was the correct step or there was error on part of registar to charge me stamp duty and registration charges for PAA house .

if its taken illegally what is the procedure to reclaim the duty 



 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 July 2025

🏛️ What the Law Says About Stamp Duty on PAA Agreements Permanent Alternate Accommodation Agreements (PAAA) are typically executed between developers and occupants during redevelopment. In February 2023, the Bombay High Court ruled that only ₹100 stamp duty should be charged on PAAAs under Section 4(1) of the Maharashtra Stamp Act, provided the Development Agreement (DA) is already stamped2. The court revoked earlier circulars that allowed stamp duty to be charged at market rates for PAAAs1.

 If the PAAA is only for replacement of the original premises (not for purchase of additional area), it is considered incidental to the DA, and no additional stamp duty should be levied4.

📜 Your Situation Based on what you've described: You had proof of continuous occupancy (rent receipts, school leaving certificate, birth certificate, ration card). Your mother’s name was listed in MHADA’s annexure, which may have led the registrar to treat you as a separate party. You were asked to pay full stamp duty at ready reckoner rates to register the agreement in your name. This seems to contradict the High Court’s ruling, especially if: The Development Agreement was already stamped. You were not purchasing additional area beyond what was allotted in lieu of your original premises.

🔁 Can You Reclaim the Stamp Duty? Yes, there is a stamp duty refund process in Maharashtra: You must apply within 6 months of payment (or up to 2 years in some cases involving cancellation of agreements)6. Submit your application to the Collector of Stamps with: Original agreement and cancellation deed (if applicable) Stamp duty receipt Affidavit explaining the situation Identity and occupancy documents6 You can start the process online via the Maharashtra Stamp Duty Refund Portal.

 If you feel the registrar acted against the law, you might also consider: Filing a formal complaint with the Inspector General of Registration and Controller of Stamps. Consulting a property lawyer to explore legal remedies or refund claims.


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