EXECUTION OF CONTRACTS IN LOCKDOWN SITUATION – Measures taken by the Govt. of Maharashtra


The Inspector General of Registration (IGR), Maharashtra realizes that payment of stamp duty by e-challan or availability of stamp papers of lower amounts has been affected by the lockdown situation in the state. To address the situation, the IGR, Maharashtra has brought in measures for tackling with the difficulties in payment of stamp duty on commercial agreements involved in loan documentation (such as loan agreements, hypothecation, undertakings, pledge agreements, guarantees, etc.) during this lock-down. This has become a necessity keeping in view that many borrowers across the country, have in pursuance to COVID19 emergency credit support schemes brought in by the RBI and banks, need to enter into necessary financing documents for availing such additional facilities.

Some of the highlights of the circular are below:

  1. In compliance with Section 17 of the Maharashtra Stamp Act (Maharashtra Stamping Law), Section 10 and Section 11 of the General Clause Act, the stamp duty shall be dealt with as documents properly stamped under Section 17 of the Stamp Act if the stamp duty is paid on the first working day after end of the lock-down.
  2. Furthermore, the documents (executed during lockdown situation) can be sent for adjudication before the jurisdictional collector of stamps within one month after the end of the lock-down, if the stamp duty is not charged as above (para 1).
  3. Online services in the form of GRAS continues to be available in banks and the same can be used for payment of stamp duty.
  4. This brief note may kindly not be construed as legal advice and a legal practitioner should be consulted for providing and guiding the reader for a solution based on facts of the case and nature of the transaction.

Penned by Rachit Mehrotra, Associate