Maharashtra Cabinet Approves Stamp Duty Concessions to Accelerate Dharavi Redevelopment and Raigad Pen Growth Centre Projects

The Maharashtra state cabinet has cleared a proposal granting stamp duty concessions for lease and land agreements involving key infrastructure projects, including the Dharavi Redevelopment Project in Mumbai and the Raigad Pen Growth Centre near Mumbai. The measure is expected to facilitate land transactions tied to these projects and accelerate implementation.

The primary focus of the cabinet's decision is the Dharavi Redevelopment Project, a major urban renewal initiative aimed at transforming one of Asia’s largest informal settlements. According to an official statement released by the Chief Minister's Office (CMO) on June 17, stamp duty exemptions will apply to lease agreements executed between the Special Purpose Vehicle (SPV) established for the Dharavi project and related government authorities.

The approval came during a cabinet meeting chaired by Chief Minister Devendra Fadnavis. The statement said the step has been taken to streamline administrative procedures and lower transaction costs associated with land and lease agreements, thereby removing potential delays in project execution.

Stamp Duty Concession for Dharavi SPV

The redevelopment of Dharavi is being undertaken through an SPV formed jointly by the Maharashtra government's Slum Rehabilitation Authority (SRA) and the Adani Group’s Dharavi Redevelopment Project Private Limited, now operating under the name Navbharat Mega Developers Private Limited (NMDPL). In the SPV, Adani Properties Private Limited holds an 80% stake, while the remaining 20% is with the SRA.

The project was awarded to the Adani Group in November 2022 through a competitive bidding process. As per the state’s classification, the redevelopment of Dharavi has been granted the status of a vital urban infrastructure and special project, qualifying it for fiscal benefits, including stamp duty relief.

According to the CMO, the concession will apply to sub-lease agreements executed among the Railway Land Development Authority (RLDA), the Dharavi Redevelopment SPV, and the SRA. These agreements are now officially included under the state’s stamp duty exemption policy.

The relief is designed to facilitate smooth execution of the lease arrangements required to mobilise redevelopment work across various land parcels, especially those involving railway-owned land in Dharavi. Railway land plays a crucial role in the project's master plan, and easing legal and financial hurdles related to these assets is viewed as necessary to prevent holdups.

Raigad Pen Growth Centre Also Granted Stamp Duty Relief

In a parallel decision, the Maharashtra cabinet approved a 50% stamp duty concession for land registration activities linked to the Raigad Pen Growth Centre. This project is a joint initiative between the Mumbai Metropolitan Region Development Authority (MMRDA) and Raigad Pen Growth Centre Ltd, and falls under the jurisdiction of the New Town Development Authority.

The concession pertains to the registration of approximately 1,217.71 acres of land in the name of a dedicated SPV formed for the project. The land is situated in Pen taluka, in the vicinity of the Mumbai Metropolitan Region.

The government’s statement indicated that the project is intended to serve as a hub for fintech, education, healthcare, retail, affordable housing, and entertainment. The development will follow global urban planning standards and be implemented under a public-private partnership (PPP) model.

Officials expect the growth centre to attract foreign investment and create significant employment opportunities in the region. The long-term fiscal strategy behind the stamp duty concession is to encourage early-stage development and land aggregation. This, the government believes, will later yield higher revenues through stamp duties on individual property sales, increased property taxes, and related economic activity.

Both projects—Dharavi and the Raigad Pen Growth Centre—are integral to the state’s urban development agenda and have been under planning and policy deliberations for several years. The Dharavi redevelopment, in particular, has faced several delays due to its scale, land ownership complexities, and relocation challenges.

In recent months, steps have been taken to identify relocation sites for ineligible residents in Dharavi, and planning authorities have been finalising layouts and development control regulations. Offering stamp duty concessions is seen as one of several measures to unblock administrative bottlenecks and trigger physical execution.

The state’s latest decision signals a move to fast-track urban transformation initiatives through financial instruments that reduce upfront burdens on project SPVs. By easing compliance costs on major land transactions, the government is aiming to improve project viability and ensure timely implementation.

The cabinet’s announcement also follows a broader policy trend. Earlier, the Maharashtra Housing Policy 2025 introduced a flat ₹1,000 stamp duty for senior citizen housing purchases—a move intended to promote specialised housing segments. The stamp duty concessions for large infrastructure projects appear to be part of this evolving fiscal framework aimed at supporting diverse forms of real estate development.

Image source- adani.com