Reform initiatives to make registration of properties and deeds user-friendly are being held up because of delay in the presidential assent for the UP Stamps Bill, 2008. The state legislature had passed the bill in February 2008.

With the enforcement of the UP Stamp Act in place of the Indian Stamps Act, introduction of e-stamping was proposed to replace stamp papers of different denominations for the collection of stamp duty.

To implement the scheme, an agreement was proposed to be signed between the state government and the Stock Holding Corporation of India (SHCIL). But this is on hold as stamp rules are yet to be framed. They can be framed only after the UP Stamps Bill gets the President’s assent.

For the services rendered by the SHCIL, the state government will pay it 0.6 per cent commission of the total stamp duty collected. E-stamping, when implemented, will usher in a secure electronic platform, free of paper and process related fraudulent practices. It will also build up a central data repository to facilitate easy verification.

E-stamping has already been implemented in Maharashtra, Delhi, Gujarat and Tamil Nadu. Delhi has made e-stamping compulsory on stamp duty above Rs 500. Other states like Punjab, Bihar, Assam and Andhra Pradesh are also in the process of implementing the new scheme.

According to the project, the SHCIL will act as a central record-keeping agency to implement this mechanism. SHCIL, promoted by public sector financial institutions, provides post trading and custodial services to institutional investors, mutual funds, banks and insurance companies.

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