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In a major appeal to the West Bengal government, the Confederation of Real Estate Developers' Associations of India (CREDAI) has urged authorities to reconsider a new rule that requires stamp duty to be calculated on a property's super built-up area (SBUA). The recent amendment by the Directorate of Registration and Stamp Revenue has caused widespread disruption, stalling property registrations across the state. CREDAI argues that the SBUA lacks a standardized definition and leads to a lack of transparency for homebuyers. The association is advocating for the state to revert to the more transparent and RERA-compliant method of calculating stamp duty based solely on the carpet area to ensure clarity and prevent further market confusion.
The real estate market in West Bengal is facing renewed uncertainty following a government directive that has made the assessment of stamp duty and registration fees on a property's super built-up area (SBUA) mandatory. The new requirement has caused a major standoff, with CREDAI West Bengal officially appealing to the state's Chief Secretary, Manoj Pant, to reverse the decision. According to CREDAI's leadership, this change has brought property registrations to a standstill, creating confusion for both developers and homebuyers. Advertisement
CREDAI West Bengal President Sushil Mohta highlighted the primary issue with the new rule as the the lack of a clear, standardized definition for SBUA. Unlike carpet area, which is precisely defined under the Real Estate (Regulation and Development) Act (RERA) as the actual usable space within the walls of a unit, SBUA includes the built-up area along with a proportionate share of all common amenities. These can include lobbies, staircases, lifts, and even clubhouses. Because its calculation is often left to individual developers, it can vary arbitrarily, leading to confusing price variations and a lack of transparency for buyers.
This move by the Directorate of Registration and Stamp Revenue represents a step back from a practice that had been in place since RERA's implementation in 2017, when the industry transitioned to the more transparent carpet area metric. While SBUA-based sales were common before RERA, the new regulations were designed to provide clarity for consumers. As an example, a flat with a 1,000 sq ft SBUA might have only an 800 sq ft carpet area, with the remaining 200 sq ft being 'loaded' onto the price for common spaces. While the total price remains the same, calculating based on carpet area provides a clearer picture of the actual usable space.
CREDAI's appeal urges the government to modify its registration portal to resume calculating stamp duty based on the carpet area. The association believes this is the most effective way to uphold the principles of transparency and fairness for all parties. They have asked the government to maintain the existing, clear norm until a formal decision can be made, preventing further disruption to the real estate market. This move is a test of how a state government balances its revenue interests with the industry's demand for regulatory clarity and buyer-centric practices.
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