The Maharashtra government has approved the distribution of Rs 240 crore collected through the 1% stamp duty surcharge to 28 municipal corporations across the state for the financial year 2026-27.
A Government Resolution (GR) issued by the Urban Development Department on June 29, 2026, under number संकीर्ण-2026/प्र.क्र.41/नवि-32, authorises the release of these funds. The surcharge stems from an amendment to Section 149A of the Maharashtra Municipal Corporations Act, 1949, read with the Maharashtra Stamp Act, 1958. It imposes an additional 1% on stamp duty for sale deeds, gift deeds, and usufructuary mortgages of immovable property situated within municipal corporation limits. For sales and gifts, the surcharge applies to the property’s market value; for mortgages, it applies to the secured loan amount.
This allocation compensates municipal corporations following the abolition of octroi and supports their civic functions. The amount represents the actual estimated collection of the surcharge for 2026-27 and will be transferred as a non-recurring grant.
Out of the gross Rs 240 crore, deductions have been effected from three municipal corporations — Nagpur, Chhatrapati Sambhajinagar (Aurangabad), and Vasai-Virar — for recovery of outstanding loans taken for water supply projects. These corporations had borrowed funds through the Maharashtra Jeevan Pradhikaran. Since the dues remained unpaid, the Water Supply and Sanitation Department had earlier permitted one-time settlement. The total outstanding of Rs 31.42 crore is being recovered in 10 equal annual instalments of Rs 3.142 crore each, commencing from 2022-23. For 2026-27, Rs 3.142 crore has been deducted from the shares of these three corporations and will be deposited into the treasury under the water supply loan head (6215 5022).
Additionally, interest dues amounting to Rs 1.50 crore (approx.) under the Urban Infrastructure Development Fund (UIDF) scheme — payable to the National Housing Bank for the October-December 2025 quarter by certain corporations that availed NHB loans — have been adjusted from their stamp duty surcharge grants and transferred internally to the government receipt head 0049 5181.
After these adjustments, the net amount to be actually disbursed stands at approximately Rs 235.36 crore.
The GR annexure provides a detailed municipality-wise statement showing:
- Gross allocation for each corporation based on actual surcharge collections
- Specific annual loan repayment deductions (mainly affecting Nagpur: Rs 1.91 crore; Chhatrapati Sambhajinagar: Rs 1.23 crore; Vasai-Virar: minor amount)
- UIDF interest deductions for Latur, Nanded-Waghala, Malegaon, Dhule, Solapur, and Mira-Bhayandar
- Net payable amounts
Major recipients include Pune Municipal Corporation (Rs 76.05 crore), Pimpri-Chinchwad Municipal Corporation (Rs 31.41 crore), Thane Municipal Corporation (Rs 27.07 crore), Nashik Municipal Corporation (Rs 14.32 crore), and Kalyan-Dombivli Municipal Corporation (Rs 11.47 crore). Nagpur Municipal Corporation will receive a net Rs 8.22 crore after deductions, while Chhatrapati Sambhajinagar Municipal Corporation will get Rs 4.10 crore net.
The funds will be drawn from Budget Head “Demand No. F-4, 3604 – Compensation and Assignments to Local Bodies…, 102 Stamp Duty (01)…, (01)(01) 1% surcharge grant to municipal corporations in lieu of octroi abolition (3604 0924)”. The Under Secretary (Navi-5), Urban Development Department, has been designated as Drawing and Disbursing Officer. He will draw the full Rs 240 crore from the treasury and transfer the respective net amounts to the DDO accounts of the municipal corporations for immediate use. All inter-departmental adjustments for dues have been completed as per the GR.
The distribution follows the formula and actual collection data for 2026-27 and has received concurrence from the Finance Department. The complete GR, along with the detailed annexure table, has been uploaded on the Maharashtra government portal www.maharashtra.gov.in with document ID 202606291637542125.
This fiscal transfer is expected to strengthen the financial position of urban local bodies and support infrastructure and service delivery in these 28 cities.
Also Read: Maharashtra Stamp Duty Refund: Here’s the List of Eligible Cases
