Urban development officials have approved a proposal to increase the stamp duty on properties within the Metro Rail Corridor by 1%. This change means that the stamp duty will now stand at 7.5%, up from the previous rate of 6.5%. However, it is noteworthy that the registration charges will remain stable. Outside of the Metro corridor area, the stamp duty throughout the city will continue to be maintained at 6.5%.
While the hike in stamp duty has been accepted, discussions surrounding an increase in the Floor Space Index (FSI) within the Metro Corridor are still ongoing. Many ideas and suggestions have been put forth, but a concrete plan is still in development. The government is optimistic that this adjustment will lead to an uptick in development charges collected during the building approval process in the corridor.
The proposal to raise the stamp duty holds significance for the Nagpur Metro Rail Corporation Limited (NMRCL), as it stands to gain half the revenue generated from the newly added 1% payment. The remaining 50% will be allocated to either the Nagpur Municipal Corporation (NMC) or the Nagpur Improvement Trust (NIT), depending on the location of the property.
Developers have voiced their opinions on the potential FSI increase, suggesting that substantial innovation could arise from it. One developer expressed to the Times of India, "The Metro corridor, where a large FSI is applicable, should extend 1 km on both sides of the Metro track. There should be no limitations on boarding house size and density. Additionally, terrace areas should only occupy a minimal space around buildings, and the premium for extra FSI should not exceed 40% of the calculated accessible value."