Odisha government moved to eliminate the legal and financial hurdles faced by thousands of flat owners by notifying a landmark ordinance on Thursday. 

According to Times Of India, by amending the Indian Stamp Act, 1899, the state introduced a simplified fee structure that removes the heavy financial burden previously placed on apartment owners’ associations during the registration of shared infrastructure.

Fixed Fees To Replace Percentage-Based Duty

The most significant shift in policy is the introduction of a nominal, flat-rate stamp duty of Rs 50,000 for the transfer of common areas. Under the previous framework, associations were required to pay 5 per cent of the property value to register corridors, community spaces, and lifts, a cost that often proved prohibitive and stalled the entire registration process. This new fixed rate applies regardless of the property’s total market value.

Additionally, this follows a December resolution that set a consolidated registration fee of Rs 20,000 for such transfers, further reducing the collective overhead for residents.

Buyer Obligations And Transparency

While the associations benefit from the new flat rate for shared assets, the government maintained the existing duty for individual residents. Homebuyers are still required to pay a uniform five per cent stamp duty upon the registration of their specific units, a figure that accounts for both the flat itself and the buyer’s proportionate interest in the building’s common facilities.

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Legislative Alignment

The ordinance serves as the final mechanism to implement the Odisha Apartment (Ownership and Management) Act, 2023. By clearing these hurdles, the state ensures that developers can formally hand over common facilities to the Association of Allottees as required by law, without triggering the massive tax liabilities that previously deterred compliance. Industry experts anticipate this reform will immediately trigger the completion of long-delayed property titles across the state.