My father had taken one plot on lease In 1973 on which he constructed two chawls and gave the all rooms to tenants on pagdi system in mumbai borivali. The agreement which my father made with the lessor is on Rs.3 Stamp Paper and no registration done. In agreement it is mentioned rent Rs.40 and 3 month deposit Rs.120.00 taken by lessor. In agreement lease period is not mentioned it is written as the lessee can enjoy the land till he abides with terms and conditions he can freely enjoy the lease without any interruption from lessor or his heirs or any other person related tohim. Now I want to put this agreement for adjudication for paying deficit stamp duty to collectors office. My plot is in CTS 376 village kanheri, zone 85 sub zone 384. I want to know how stamp duty will be calculated either on basis of lease rent or as per 90%of value as on 1973 ??as it is indefinite period of lease. Also advice if any scheme is there and can anyone help me with Read reckoner rates of 1973. Also guide is it worth paying deficit stamp duty or let the agreement as it is. Without stamp duty whether document carry legal weightage or not?? I want to know because recently redevelopment planning is going land owner is doing meeting with different developers

Detailed Legal Analysis

Your father's lease agreement can be put for adjudication to pay the deficit stamp duty, but the calculation of stamp duty depends on the specific provisions of the Maharashtra Stamp Act, 1958.

Here are the key points regarding the calculation of stamp duty and the legal implications of the lease agreement:

• Stamp Duty Calculation: Under the Maharashtra Stamp Act, 1958, stamp duty on lease agreements is generally calculated based on the annual lease rent or the market value of the property, whichever is higher. Since your lease agreement does not specify a fixed period, it is treated as a lease for an indefinite period.
• Lease Rent Basis: The stamp duty can be calculated based on the annual rent of Rs. 40, which would be Rs. 480 per year. The duty will be calculated at the applicable rate for lease agreements, which may vary based on the current reckoner rates.
• Market Value Basis: Alternatively, the stamp duty could be calculated based on the market value of the property in 1973, which may be determined through the Collector’s office or local land revenue records. The market value can be 90% of the prevailing reckoner rate at that time.
• Reckoner Rates: To find the reckoner rates from 1973, you will need to approach the local Collector’s office or the Sub-Registrar’s office. They should have historical data regarding property values for that period.
• Deficit Stamp Duty Schemes: The Maharashtra government often has schemes for regularizing documents with deficit stamp duty. Check with the local Collector’s office for any ongoing schemes that could facilitate this process.
• Legal Validity: An unregistered lease agreement with insufficient stamp duty may still hold some legal weight but could be challenged in court. The lack of proper stamp duty can make the document inadmissible as evidence in legal disputes as per the Indian Stamp Act, 1899, Section 35.

Considering the redevelopment plans and the potential issues arising from the lease's legal standing, it may be prudent to regularize the agreement by paying the deficit stamp duty. This can strengthen your position in any negotiations with developers, ensuring that your rights as a tenant or leaseholder are protected in the redevelopment process.