The Mamata Banerjee government has decided to extend till December 31 the 2 per cent relief on stamp duty and 10 per cent reduction in the property circle rate.

The decision was announced by the chief minister at an administrative review meeting in Kurseong on Tuesday.

“It has been extended by three months,” Mamata said in response to a question.

The original measure, aimed at stimulating demand in the residential real estate segment and filling up government coffers through a resultant rise in the volume of transactions, was announced during the budget in July this year and was supposed to be in place until October 30.

The stamp duty now stands at 4 per cent and 3 per cent in urban and rural areas for properties up to Rs 1 crore and 5 per cent and 4 per cent for properties above that ceiling, respectively.

A report published earlier this month by property consultancy Knight Frank suggested that the duty cut had had the desired effect in the market. During the July-September period, as many as 15,160 residential sales deeds were registered in the Calcutta Metropolitan Area, marking a 122 per cent growth over the same period a year ago.

Buoyed by the response, developers had been pleading with the government for an extension, and Credai West Bengal had written a letter to the chief minister on October 9.

“Buyers could not take full advantage of the scheme. There was a technical glitch initially for a fortnight, and then in October, there were Puja holidays. Moreover, because of Covid, registration could not be done in full swing,” Sushil Mohta, president of Credai West Bengal, said.

Nandu Belani, head of Credai in Calcutta, said the extension may not come into effect from November 1 as the decision has to be ratified in the Assembly. “The government should consider extending it till March 31. Many other states, like Maharashtra, have done it,” Belani added.