Release deed registration in Navi Mumbai

Stamp duty, ancestral

₹200 — Art. 52(a)

Stamp duty, other cases

As a conveyance — Art. 52(b)

Present within

4 months — s. 23

Condonable delay

4 more months — s. 25

What a release deed is

A release deed — hakka sod patra — is the instrument by which a person who holds a share in a property gives that share up in favour of another person who already holds a share in the same property. Article 52 of Schedule I to the Maharashtra Stamp Act, 1958 describes it as an instrument whereby a person renounces a claim upon another person or against any specified property. Three things follow from that definition, and each of them is where a deed goes wrong.

The person receiving must already be a co-owner. A release in favour of somebody with no existing share is not a release, whatever the heading says; it is a gift or a sale and is charged as one. Nothing is paid for it — where money passes, the instrument is a sale of the share. And it transfers a right in immovable property, so it is stamped and registered like any other conveyance; a release written on plain paper, or notarised, or kept in the family file, transfers nothing.

Relinquishment deed is the same instrument under another name. The term is used in other States and in general writing; in Maharashtra the Act calls it a release, and the duty, the registration and the effect are the same.

When one is used

Almost always after a death. A flat in Vashi stood in a father’s name; he has died intestate; the widow and three children each hold a share under the Hindu Succession Act; the family has agreed the flat should stand in the widow’s name. Each child releases his or her share in her favour by a single deed, and the flat is hers. The same happens where siblings settle a parent’s flat on one of them, where a spouse comes off a joint holding, and where a nominee in the society’s records and the legal heirs are not the same people — a nomination does not make the nominee the owner, and the heirs’ shares still have to be dealt with.

It is not the document where the property is to be divided rather than consolidated — that is a partition deed — nor where the person receiving is not already a co-owner, nor where money is changing hands. Which document fits is settled from the title papers before anything is drafted, because the Stamp Act charges an instrument by what it does and not by what it is called.

Stamp duty

Article 52 has two clauses. Under clause (a), where the property is ancestral and the release is made without consideration by or in favour of a brother, sister, son, daughter, father, mother, spouse, a grandchild through a predeceased son, or the legal heirs of any of those relations, the duty is a fixed ₹200. Under clause (b), in any other case, the duty is the same as on a conveyance under Article 25, charged on the market value of the share released — which in Navi Mumbai means the rate and the cess that apply to a sale in that area.

The word that decides most cases is ancestral. A flat the deceased bought with his own money is self-acquired, not ancestral, and a release of a share in it by his heirs falls under clause (b) however close the relationship. Where the position is doubtful, the deed can be sent to the Collector of Stamps for adjudication under Section 31 before it is executed; the alternative is a deed stamped at ₹200 on the family’s understanding, impounded under Section 33 when it surfaces years later, and duty with penalty demanded then.

Duty is paid through GRAS or e-SBTR before or at execution, and the challan is presented with the deed. Market value, where it is needed, is the ready reckoner value for that property on the date of execution.

Registration fee and time limits

The registration fee is charged under the Table of Fees under the Registration Act. Where the deed is assessed as a conveyance it is one per cent of the market value of the share, subject to a maximum of ₹30,000. Where the ₹200 duty applies, the office charges the fixed fee prescribed for the instrument, which is confirmed at the office when the appointment is booked. Scanning and handling charges are collected separately.

The deed is presented for registration within four months of the date of execution under Section 23 of the Registration Act, 1908. Under Section 25, a delay of up to four further months may be condoned by the Registrar on payment of a fine that may extend to ten times the registration fee. After eight months the document cannot be registered, and under Section 49 an unregistered release deed does not affect the property and is not received as evidence of the release.

Documents required

The process

1. 01Settle what the property is and who holds itWhether the property is ancestral or self-acquired, and whether every person releasing and receiving is already a co-owner, decides which clause of Article 52 applies and whether a release deed is the right document at all. This is settled from the title papers and the devolution, not from what the family understands the position to be.
2. 02Draft the deedThe parties and their relationship, the property and its measured description, the share being released, the recital of how the releasor came to hold it, and a statement that no consideration passes. A release drafted as a gift, or a gift drafted as a release, is assessed as what it actually is.
3. 03Pay the stamp dutyThrough GRAS or e-SBTR, at the rate Article 52 provides for the case. Where it is doubtful whether the ₹200 rate applies, the deed can be sent for adjudication under Section 31 of the Maharashtra Stamp Act before execution rather than impounded after it.
4. 04Book the sub-registrar office with jurisdictionThe office is fixed by where the property lies, not by where the parties live. Appointments are taken online through the IGR Maharashtra portal.
5. 05Execute and present for registrationBoth parties attend with two witnesses and original identity documents. Photographs and thumb impressions are taken at the office. The deed is presented within four months of execution under Section 23 of the Registration Act, 1908, and the registration fee is paid.
6. 06Collect the registered deed and Index IIThe registered document is ordinarily returned the same day with the registration endorsement. Index II is obtained separately and is what a later purchaser or lender will search for.
7. 07Complete the recordFor a flat, the society endorses the share certificate and records the transfer; for land, mutation is applied for so the 7/12 extract or property card shows the new holding; for a CIDCO lease, the transfer is recorded with CIDCO. Until this is done the record still shows the releasor.

Where it is registered

At the office of the Joint Sub-Registrar within whose jurisdiction the property lies. The office is fixed by the property, not by where the parties live or where the advocate sits. Navi Mumbai is served by four offices in Thane district — Vashi, Belapur, Kopar Khairane and Nerul — and by the Panvel offices, which are in Raigad district and follow Raigad’s ready reckoner. Which office takes a particular sector or village is shown when the appointment is booked on the IGR Maharashtra portal.

The addresses, working hours and jurisdictions are on the sub-registrar offices in Navi Mumbai page.

Release, gift, sale or partition

The rates and concessions are those in Schedule I to the Maharashtra Stamp Act, 1958 as they stand on the date shown at the top of this page. They are amended from time to time; the rate in force on the date of execution is what applies.

What goes wrong

1. 01Self-acquired property called ancestralThe ₹200 rate under Article 52(a) is for ancestral property. A flat the deceased bought is self-acquired, and a release of a share in it is assessed as a conveyance under Article 52(b). A deed stamped at ₹200 on that footing is impounded when it surfaces, and duty with penalty is demanded then.
2. 02A release to someone who is not a co-ownerA release is the giving-up of a share in favour of a person who already holds a share. Executed in favour of anyone else it is not a release, whatever it is called, and is charged as a gift or a conveyance.
3. 03An heir left outEvery heir with a share has to release it, or the record shows a share still outstanding. A nomination in the society's records does not make the nominee the owner; the heirs' shares still have to be dealt with.
4. 04Executed, then not registered in timeFour months from execution under Section 23, four further months on fine under Section 25, and after that the deed cannot be registered at all. An unregistered release does not affect the property and is not received in evidence of the transaction.
5. 05Registered, then the record left as it wasRegistration transfers the share. It does not by itself change the society's register, the property card or CIDCO's records, and until those are changed every later transaction runs into the old name.

Questions we are asked

What is a release deed?

A release deed — hakka sod patra in Marathi — is the document by which a co-owner gives up his or her share in a property in favour of another co-owner, without payment. It is used most often among legal heirs after a death, so that a flat or land held jointly comes to stand in one name. It is a transfer of immovable property and has to be stamped and registered.

How much is the stamp duty on a release deed in Navi Mumbai?

Under Article 52 of Schedule I to the Maharashtra Stamp Act, 1958, ₹200 where the property is ancestral and the release is made without consideration by or in favour of a brother, sister, son, daughter, father, mother, spouse, a grandchild through a predeceased son, or the legal heirs of those relations. In every other case the duty is the same as on a conveyance under Article 25, charged on the market value of the share released — the rate that applies to a sale in that area.

What is the registration fee for a release deed?

The fee under the Table of Fees under the Registration Act. Where the deed is assessed as a conveyance, it is one per cent of the market value of the share, subject to a maximum of ₹30,000. Where the ₹200 stamp duty applies, the office charges the fixed fee prescribed for that instrument, which is confirmed at the office at the time of registration.

Does a release deed have to be registered?

Yes. It creates or transfers a right in immovable property and falls under Section 17 of the Registration Act, 1908. Under Section 49, a release deed that is not registered does not affect the property and cannot be received as evidence of the release. A notarised release deed is not a substitute.

Where is a release deed registered in Navi Mumbai?

At the office of the Joint Sub-Registrar within whose jurisdiction the property lies. Navi Mumbai is served by the offices at Vashi, Belapur, Kopar Khairane and Nerul in Thane district, and Panvel in Raigad district. The office is fixed by the property's location, not by where the parties live.

What is the time limit for registering a release deed?

Four months from the date of execution under Section 23 of the Registration Act, 1908. Under Section 25 a delay of up to four further months may be condoned on payment of a fine that may extend to ten times the registration fee. After eight months the deed cannot be registered.

What is the difference between a release deed and a gift deed?

A release can only be in favour of a person who already holds a share in the property; a gift can be to anyone. Both are without consideration. The stamp duty is charged under different Articles — 52 for a release, 34 for a gift — with different concessions, so which document is right depends on who is receiving and how the property is held.

What is the difference between a release deed and a relinquishment deed?

Nothing in Maharashtra. Relinquishment deed is the term used in some other States and in general writing; the Maharashtra Stamp Act calls the instrument a release, under Article 52. The same document, the same duty, the same registration.

Can a release deed be executed for a flat in a co-operative housing society?

Yes. The deed is registered at the sub-registrar office in the usual way, and the society then records the transfer and endorses the share certificate. The society's no-objection certificate is ordinarily taken before registration. A nomination filed with the society does not do the work of a release; the nominee holds for the heirs until their shares are settled.

Can a release deed be cancelled?

Not by the releasor changing their mind. Once executed and registered it operates as a transfer. It can be set aside by a court on the grounds on which any transfer can be — fraud, coercion, undue influence, or want of capacity — and a suit for that is subject to limitation.

Does the release deed need the presence of all the parties at the office?

Every releasor and every releasee executes the deed and is identified at the office, in person or through an attorney under a registered power of attorney. Two witnesses attend as well. A party abroad ordinarily executes a power of attorney before the Indian consulate, which is then adjudicated and used for the registration.