Bombay HC Orders Maharashtra Government to Refund ₹3 Lakh Stamp Duty to Homebuyer

Mumbai, May 5: The Bombay High Court has directed the state government to refund ₹3 lakh in stamp duty to a homebuyer who had mistakenly paid the amount under an incorrect stamp duty head.

Case Background

The petitioner purchased electronic stamps in March 2018 for registering a flat purchase agreement. Due to an inadvertent error, he selected the wrong option instead of "Non-Judicial Stamps."

His refund application was rejected by the Collector of Stamps, Borivli, citing a delay of two months and eight days beyond the six-month statutory period. Both the Collector and the Chief Controller of Revenue Authority upheld the denial.

Court's Observation

Justice Jadhav said it was a "procedural technicality defeating legitimate entitlement." The court held that the payment error was purely inadvertent, the stamps had never been used, and the delay – partly due to documented health issues – could not justify the state retaining the money.

"The government cannot unjustly enrich itself by forfeiting the stamp duty amount deposited under a wrong head," Justice Jadhav observed, adding that a citizen "cannot be penalized for an inadvertent mistake" that results in financial loss to the state without lawful authority.