India, Aug. 27 -- The Bombay High Court directed Maharashtra government authorities to refund Rs.70.12 lakh stamp duty to a developer after a Development Agreement (DA) for a Pune real estate project failed to materialise and was subsequently cancelled. The court held that a development transaction that fails before the intended development occurs is entitled to a refund under the Maharashtra Stamp Act, 1958.

The case involved a developer, through its partnership firm, entering into a Development Agreement (DA) with a landowner in Pune's Balewadi area in April 2013 for the development of 8,000 sq m (over 86,111 sq ft). The developer paid Rs.70.12 lakh in stamp duty on the agreement.

However, the proposed project could not proceed as the...