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The Maharashtra government has approved a policy to waive stamp duty and registration charges on the sale and purchase of so-called enemy properties in the state to encourage higher participation in their auctions. Enemy properties are assets left behind by individuals who migrated to countries India considers hostile after past conflicts, mainly Pakistan and China, and are currently vested with the Custodian of Enemy Property for India (CEPI). Historically, these assets have seen low interest in auctions due to additional transaction costs and legal complexities. By scrapping the stamp duty component, Maharashtra aims to lower the cost barrier for buyers and make auctions more attractive, potentially speeding up the monetisation and utilisation of these idle properties. The move is expected to help the state monetise a backlog of such assets, particularly in regions like Mumbai, Thane, Palghar and elsewhere.
The Maharashtra government has taken a significant step to incentivise the sale of enemy properties by waiving stamp duty and registration charges on their sale and purchase. The decision was approved during a state cabinet meeting and is aimed at boosting participation in auctions for these assets, which have traditionally seen limited bidder interest. Advertisement
Enemy properties are defined under the Enemy Property Act, 1968, as immovable assets such as land or buildings left behind by individuals who migrated to countries that India deems hostile notably Pakistan and China after wars with those nations. Once vested with the Custodian of Enemy Property for India (CEPI), such properties cannot be sold or inherited by the original owners or their heirs under the provisions of the Act. They remain under the control of the central government until disposed of through lawful channels such as public auctions.
Maharashtra currently holds a large inventory of enemy properties, numbering in the hundreds, with a substantial concentration in the Mumbai metropolitan region, including the island city and suburban areas, as well as in districts like Thane, Palghar, Nagpur, Pune and others. These properties have historically struggled to attract bidders due to high entry costs, limited awareness, perceived legal baggage and additional fiscal charges like stamp duty and registration fees.
By waiving stamp duty and registration charges, the state government intends to reduce the overall transaction cost associated with acquiring these properties. This fiscal relief is expected to make the auctions more attractive to investors, developers and private buyers, potentially leading to more competitive bidding and quicker monetisation of the assets. In turn, the state stands to gain revenue through successful sales and follow-on economic activity tied to development or utilisation of these assets.
The policy change also aligns with broader efforts to streamline the disposal of long-idle government-held real estate and integrate such properties into active economic use. With lower upfront costs, buyers may be more willing to participate in e-auctions, helping clear a backlog of unutilised assets and generating financial returns for the state's coffers.
While the move is largely seen as a practical measure to stimulate auctions, its effectiveness will depend on buyer response and how quickly the waiver translates into active bids and property transfers. If successful, it could serve as a model for other states holding similar inventories of enemy properties.
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