Kindly note that CIDCO Transfer charges are still payable and land in Navi Mumbai is still Lease Hold Land. Do not believe fake news and fake politicians who have zero understanding of the law and something called Budget.Mayur Panghaal (Owner Sky Properties)
After much delay from its set deadline of 1st April of every year, CIDCO finally released the new Transfer Charges for plots, shops and flats in Navi Mumbai region. These are valid on all properties bought or sold in Navi Mumbai. The rates usually go up 10% every year. They are calculated on the carpet area of the shop/flat and depend on the location. The Time taken to complete the procedure is stated as 20 days by CIDCO, but in reality it can take anywhere from 1 month to a couple of months due to the absolute chaos, total corruption and lack of systems prevailing in CIDCO offices.
CIDCO Transfer Charges are mandatory/compulsory in Navi Mumbai for all types of real estate – Shops, offices, flats, plots etc ?
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.
Does Govt charge GST on registration and stamp duty paid while purchasing a flat ? NO. So why is CIDCO taking 18% as GST for doing exactly the same thing (changing your name in govt records) ?
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 90% 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).
Corruption in CIDCO Transfer Dept
The corruption is so blatant that its running under the very nose of the so called ‘Vigilance Dept’ located on the 5th floor of the same building !! Any complaint to the officers is simply brushed aside or the complainant is made to do so much running around that he is forced to give up. The level of corruption going on in CIDCO has also led to murders of staff in the past.
Even the harmless looking women sitting behind counters on the first floor in the estate department are corrupt to the core.
Looks can be really deceptive. All are heavily involved in taking money and bribes to process your files. In such a situation it can be easily said that CIDCO is one of the most corrupt organizations in the country.
In a new move, CIDCO has started charging 18% GST on All NOCs … which means every transfer/NOC will now cost thousands of rupees more This Circular was issued on 5th December 2017…and will also be sent to all who were issued NOCs after July 2017For issuing Mortgage NOC, CIDCO charges Rs 500+18% GST as processing fees
Note : Conveyance of land and building in the Name of the Society is compulsory for CIDCO Transfer. The Only conclusive proof of that is a document called the Final Order (listed below). Without this document, no CIDCO transfer will be possible.
For Societies not having conveyance in their name along with Final Order from CIDCO : Even if your CIDCO society conveyance is not done, it is advisable to get all the documents for CIDCO transfer signed and ready as the seller may not be traceable if and when the society manages to get the Conveyance done after a few years.
We can provide our professional services to facilitate CIDCO Transfer Process for a nominal charge of Rs 15,000 (all inclusive).
You can pay online via Gpay, Phonepe or UPI and documents will be prepared and sent to you via courier in 2 working days. We only require a copy of the Sale Agreement for preparations of the Documentation.
We only need a copy of your sale agreement/sale deed to process the documentation. You can mail a scanned copy or send it via courier.