November 25, 2025: The Maharashtra government has introduced a major financial relief measure for residents of Mumbai’s cluster redevelopment projects by waiving registration fees and stamp duty on homes between 400 sq ft and 600 sq ft. The exemption applies exclusively to existing tenants or residents shifting into newly redeveloped buildings under the cluster redevelopment framework. The move was formalised through a notification issued by the Revenue Department after securing approval from the Inspector General of Registration and the Controller of Stamps.
Previously, residents were required to pay full stamp duty on the additional carpet area they received post-redevelopment, calculated either on construction cost or ready-reckoner rates. Under the revised policy, valuation will now consider the original carpet area, the extra area granted under redevelopment norms, and the “fungible” area—additional permissible construction—at a significantly concessional rate. The new valuation metric will use 112 times the rent or a lower applicable rate, reducing the financial burden considerably.
As outlined under the Development Control and Promotion Regulation (DCPR) 2034, every cluster redevelopment resident is entitled to at least 35 sq m of carpet area. Depending on the project’s scale, residents may receive 10% to 35% more space, in addition to 35% fungible area. The government has clarified that all this additional space will now be classified as “replacement area,” ensuring a more favourable stamp duty valuation for beneficiaries.
The economic impact of this policy shift is substantial. In a smaller redevelopment cluster of around 4,000 sq m, residents could collectively save approximately Rs 21.14 lakh in stamp duty. For a much larger cluster spread over nearly 50,000 sq m, the waiver could rise to about Rs 4.36 crore. The decision is expected to encourage smoother redevelopment transitions while making upgraded homes more affordable for long-time residents.
Source: Prop News Time
