{Revenue generation} Haryana to crack whip on delayed property registration

The Haryana government will make it mandatory for real estate developers, builders and co-operative housing societies to complete the registration deed of the properties transferred to the allottees. This will also include properties which were transferred by the builders and societies to the allottees years ago but were not registered.

For allottees who fail to register deed of conveyance within a specified period, the state government is planning to impose a tough stipulation whereby the allottee will have to pay stamp duty at the current collector rate. “The prospects of paying a higher stamp duty at current collector rates will spur allottees to go in for registration of conveyance deed. Instructions in this regard will be issued by the revenue department,” said an official.

Registration of conveyance deed under Section 17 of the Registration Act, 1908 is compulsory to make the transfer of property and its ownership valid.

Financial burden of Lado Lakshmi Yojana weighing on govt’s mind

The move is aimed at generating more revenue by increasing the stamp duty income. Though the revenue deficit, as per the 2025-26 budget estimates, is estimated to be about ₹20,599 crore, it is expected to rise in view of implementation of Lado Lakshmi Yojana, BJP’s 2024 assembly poll promise of providing monthly financial assistance of ₹2,100 to every woman in the state. Though a provision of ₹5,000 crore has been made for implementing Lado Lakshmi Yojana in the 2025-26 budget estimates, the state government is working out an exclusion-criteria to ensure that only worthy beneficiaries get the financial assistance and thus reduce the financial implication of the scheme. Revenue deficit is the gap between the revenue receipts and expenditure.

Chief minister Nayab Singh Saini in his budget address had announced that while real estate developers, builders, societies, and authorities transferred property to the allottees and handed over possession, they failed to complete the registration deed. This is legally incorrect and causes loss of stamp duty revenue for the government, Saini had said.

Law does not provide for levying of stamp duty at existing collector rates

The Registration Act, 1908 though does not provide for payment of stamp duty fee at the current collector rate for pending conveyance deeds.

Section 23 of the Registration Act provides for a period of four months for registration of documents from the date of its execution while Section 25 of the Act has a remedial provision for condoning instances where delay in presentation of documents for registration is unavoidable.

As per Section 25, if there is a delay of up to four months owing to urgent necessity or unavoidable accident, the Registrar may accept a document for registration on payment of a fine not exceeding 10 times the amount of the registration fee.

Legal experts pointed out that the state government cannot force payment of stamp duty at current collector rates in view of the provisions of the Registration Act. “The state government though can bring a state amendment in the Registration Act to impose stiffer penalties for non-registration of deed of conveyance beyond a period of four months,” said an expert.

Higher target set for revenue generation from stamp duty

The Chief Minister in the 2025-26 budget estimates has also set a higher revenue target of garnering ₹16,555 crore from stamp duty income as compared to ₹14,048 crore earned by the government from stamps and registration in 2024-25 revised estimates. The state government had in 2024-25 budget estimates set a revenue target of earning ₹15,101 crore from stamps and registration but fell short.