In this article we will know abot why Maha Govt bans Rs 100 stamp paper, now Rs 500 Stamp Paper Must For All Works.

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On Friday, the legislative council approved the Maharashtra Stamp (Amendment) 2024 bill, which will raise the stamp duty on affidavits to Rs 500 from the previous Rs 100.An ordinance concerning the matter was issued on October 14, following a cabinet decision made on September 30.

The ordinance was turned into a bill by being presented to the council on Friday, where it was approved without any suggestions.Cabinet minister Radhakrishna Vikhe-Patil, during the council’s bill presentation.

The revenue department has suggested that franking should be required instead of the stamp paper system for all legal documents. The government has mandated that stamp duty exceeding ₹10,000 must be paid through franking, while duties below this amount can still be settled using stamp paper.

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The state saw a decrease in the use of stamp papers following the exposure of the Telgi scam in the early 2000s. Stamp papers of ₹100 and ₹500 are utilized for affidavits submitted for government programs, such as Mhada housing, crop insurance, and birth/death certificates.

The proposal remains in the preliminary phase and will require modifications to the Maharashtra Stamp Act. States such as Gujarat have already abolished physical stamp papers. The Gujarat government’s decision was contested in court, yet the ruling favored the government.

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Ashok Kadam, president of the Stamp Venders Association, stated, “We aren’t opposed to the transition, but the real issue is if the government has the means to execute it.” Residents in the rural areas of the state tend to avoid the online franking system due to inadequate facilities. Gujarat and Karnataka, after initiating it four years back, have assigned the duty of franking to private vendors.