LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Mandarin   04 September 2022

Mhada allotment letter registration

I am looking to purchase a flat from first buyer in MHADA building which was constructed 7 years ago. The lock-in period of 5 years is complete. The bank has given clearance from legal and valuation point of view. However, the original allotment letter / possession letter was not registered by the first buyer. He has paid the stamp as required by MHADA.

But my property agent insists on the registration (adjudication) of possession letter which would cost a big amount as MHADA calculated stamp duty was lesser than market rate stamp duty applicable at the time and also includes penalty for delay in registration.

The agent claims this will be required at the time of conveyance and would cause an even larger penalty at 2% every month. The two lawyers I visited could not give a clear answer.

Is this registration/adjudication really required? If yes, who should pay the cost, myself (buyer) or the the seller?

 



Learning

 3 Replies

Dr J C Vashista (Advocate)     04 September 2022

Prima facie MHADA is yet to convey title in favour of allottee / transferee, which (title) has to be a registered with Sub-Registrar after payment of prescribed stamp duty and registeration charges as applicable in Maharashtra / Mumbai.

Show relevant documents to a local prudent lawyer.

Mandarin   04 September 2022

The allotee has paid stamp duty as prescribed by MHADA, has allotment letter, possession letter and possession Receipt duly signed. But these documents are not registered. And the stamp duty asked by MHADA was little less than market rate prevalent at the time. Because MHADA houses are supposed to be affordable than market. Same is the case for most of the tenants of the same building.

So my question is, if the registration of the same documents is required, does one have to pay all the late registration costs and penalties or is there any exemption in additional stamp duty as the amount was calculated and prescribed by MHADA? Is registration required for conveyance?

Would really appreciate answer from someone experienced in MHADA matters. Thank you in advance!

Karan Naik   20 February 2023

Registration was not mandatory earlier. It has been compulsory from last year only. No penalty on unregistered allotment letters.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register