CIDCO Head office in Belapur
“Have CIDCO Transfer charges been abolished ?Typical call we receive daily
I read it in the ‘Newspapers“
CIDCO Transfer Charges are mandatory/compulsory in Navi Mumbai for all types of real estate.
Because all land in Navi Mumbai belongs to CIDCO. They acquired the farmland from villagers starting back in 1970’s. They only give land on lease (long lease of 60 years) and hence they are like a giant landlord. Now logic should tell us that if we are sitting on a property that belongs to a giant landlord (in this case its CIDCO), it is but obvious that if you want to leave and make someone else sit in your place, you will need the approval of the landlord and abide by the lease conditions.
What happens if you dont pay CIDCO transfer charges?
Well, that depends on whether you are the buyer or seller of the property and whether you and the buyer before you has paid the stamp duty or not. If the buyer before you has paid the transfer charges, then you dont have to worry. Just pay the transfer charges for your transaction and you’re ok. But if the seller has not paid his transfer charge (when he purchased the flat) then you are liable to pay it when you purchase the flat from him. Or else, you can ask him to shell out the money for his transfer.
So make sure that you purchase a flat only after checking that the previous owner has paid the CIDCO transfer charges. If you buy from the builder, you don’t have to pay transfer charges as it will be applicable after the formation of the society and at the time of conveyance of the land and building in favor of the society.
Sometimes even the banks are not aware of these transfer charges as these are unique to CIDCO areas in Maharashtra, and the builders don’t want to tell you at the time of selling the flat to you as they don’t want any additional expenses to come in the way of their sale. CIDCO transfer charges increase by approx 10% every year.
Is there any other clearance required from CIDCO ?
Yes. After obtaining the CIDCO NOC, you may require a ‘Mortgage NOC’ (if you are taking a loan from a bank). The bank will not disburse the loan unless you obtain this Mortgage NOC from CIDCO.
What do transfer charges depend upon?
They depend on the carpet area (not built up area) of the flat.
Is GST applicable on CIDCO Transfer Charges ?
Unfortunately, CIDCO has started levying GST of 18% on CIDCO Transfer Charges. It may help to note that before 2014, there were no additional taxes of any kind on CIDCO Transfer charges as neither is CIDCO selling you any goods and neither is it providing any service to you. Simply changing your name in Govt (CIDCO) records and taking money for the same is NOT a service.
But aren’t CIDCO Transfer charges abolished ?
CIDCO Transfer charges are implemented as per law passed in Assembly. Its called the New Bombay Disposal of Lands Act and New Bombay Disposal of Land Ruels. To change that law and the rules which govern it, it will have to be altered in the Assembly.
CIDCO earns hundreds of crores via these Transfer charges, which is then spent on by CIDCO for developing the infrastructure and paying its staff salaries. So promising to ‘abolish’ it was just like a lot of other false promises made by ignorant and foolish politicians who have zero idea of economics. But these fake promises only work where the population at large is ignorant of basic laws.
When are these charges payable ?
These charges are payable after registration of the Sale Agreement (Part Payment Agreement) or in case of payment in one shot (No bank loan) it is payable after the Sale Deed.
Are all flats/buildings/societies eligible for CIDCO Transfer Charges automatically ?
No, the Society must have something called Conveyance and must feature in CIDCO records. More than 50% of Societies do not have ‘Conveyance’ in their favor in CIDCO records.
Are transfer charges fixed?
No, they increase by 10% every year on the 1st of April (beginning of new financial year).
So please check for the latest rates below….
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