Housing societies’ deemed conveyance gets poor response
Pune- A special drive launched by the state government last month to issue deemed conveyance for the housing societies has got poor response as the drive is plagued with innumerable problems from calculation of the stamp duty to the lack of awareness among the owners regarding the importance of society formation.
Every society requires deemed conveyance as it allows the ownership of the flat owners on the land where the society is established. It is also required for builders to form a cooperative housing society.
Currently, Pune and Pimpri-Chinchwad have about 14 housing societies who have taken advantage of the state government’s drive to issue deemed conveyance of their societies with the builders not completing the formalities for the society formation.
Owing to the calculation of the stamp duty for housing projects, which were built before 1985 with the ready reckoner rate system in effect, there were disputes and roadblocks recently. Other factors responsible for the poor response of the drive were unsold inventory and the reluctance to take action against the builders for non-execution of the conveyance deeds.
About 10,629 residential societies in Pune and Pimpri-Chinchwad have no yet sought to the deemed conveyance with at least half of them having issues of stamp duty amount calculations since they were constructed before 1985. The flat owners had registered heir properties then on stamp papers of Rs. 5 and Rs. 10 denomination with the ready reckoner force not in action.
The ready reckoner system came in to force in the year 1985 which fixed the base price for every area. As per that, the owners are subjected to pay the stamp duty either on the value of the property fixed as per the ready reckoner act or on the basis of the agreement amount.
According to a legal practitioner, earlier there was no organised method for stamp duty calculation and the submission of agreement on a Rs 10 stamp paper was enough. But today with most of the property documents being misplaced by the owners, it has become difficult to trace the record room of the stamp duty office.
However, the stamp duty officers demand that such flat owners should pay the stamp duty as per the ready reckoner rates. Likewise, the flat owners are against this, as the stamp duty payment is much higher when compared. Owing to this the process of the secure deemed conveyance has been delayed.
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