In a major boost for homebuyers and the real estate sector, the Odisha Government has promulgated an Ordinance amending the Indian Stamp Act, 1899, simplifying apartment registrations while protecting state revenue.
The notification, published today in the Odisha Gazette, ends years of financial headaches for apartment owners by capping stamp duty on common areas at a nominal Rs 50,000 and introducing a uniform 5% rate on individual units.
Under the Odisha Apartment (Ownership and Management) Act, 2023, the Association of Allottees was previously required to pay a full 5% stamp duty on the entire value of common areas and facilities during the first deed of conveyance. This hefty charge created significant financial strain, delayed projects, and discouraged developers and buyers alike.
The new Ordinance brings sweeping relief. The Association of Allottees will now pay only a flat Rs 50,000 stamp duty for transferring common areas and facilities. When individual apartment units are registered, buyers will pay a uniform 5% stamp duty on the apartment value plus the undivided proportionate share in the common areas — replacing the earlier confusing slabs of 3%, 4%, and 5%.
This amendment removes a major roadblock in apartment ownership. It makes the process simpler, faster, and more transparent while ensuring the government does not lose revenue. The change is expected to accelerate project completions, reduce litigation over common areas, and make apartments more affordable in cities like Bhubaneswar, Cuttack, and Rourkela.
The Ordinance comes after Cabinet approval and reflects the state government’s commitment to ease of doing business in the real estate sector. With this reform, Odisha joins a small group of states that have modernised stamp duty rules to match the demands of modern apartment living.
