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Pune: Mobile Tower Agreements Regularized, Government Earns ₹2.5 Crore in Revenue

Telecom service provider companies in Pune, Pimpri-Chinchwad lease private properties to erect towers. To evade stamp duty, agreements were executed on low-value stamp papers of ₹500 to ₹1,000.

Salil Urunkar

Pune: The IGR and Controller of Stamps Office has taken decisive action against telecom service provider companies for evading stamp duty on rental agreements for mobile tower installations. Following notices and warnings of potential legal action, agreements for 500 mobile towers in Pune and Pimpri-Chinchwad have now been registered. This move has resulted in the government collecting approximately ₹2.5 crore in revenue.

The Evaded Stamp Duty Issue

Telecom service provider companies in Pune, Pimpri-Chinchwad and surrounding areas often lease private properties to erect towers. Under the law, such agreements between companies and property owners must be registered, and the requisite stamp duty must be paid. However, a significant number of companies bypassed this regulation, executing agreements on low-value stamp papers of ₹500 to ₹1,000.

According to legal provisions, these agreements, categorized under "Leave and License," require payment of 5% stamp duty on 25% of the land's market value. The evasion of this duty was discovered during a government audit conducted last year. Inspectors reviewed 100 mobile towers and found that companies had avoided paying the correct stamp duty.

Government Action and Compliance

The department issued notices to these companies and sought additional information from the municipal corporation. Subsequently, one major mobile company registered agreements for 500 towers. Officials from the department stated that this initiative has set a precedent, and further action will be taken to ensure compliance across the sector.

Revenue and Future Measures

The department emphasized that such agreements must adhere to the rules to prevent revenue loss. It plans to audit more towers in the future and ensure that all agreements are appropriately registered.

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