The high court on Thursday stayed a state government notification imposing a duty for transferring plots in Salt Lake at the rate of Rs 5 lakh a cottah.

On March 11, a division bench of the high court had issued an order allowing 88 plot holders, who were allotted land in the township in the first phase of distribution, to transfer their properties without paying the duty to the urban development department.

On Thursday, Justice Sanjib Banerjee issued an interim stay on the state government's notification on collection of the duty in regard to the rest of the plots.

Justice Banerjee in his order also restrained the government from allowing the lessees to transfer their plots till disposal of the case.

"Since the matter of collecting duty is pending before the court, the state is directed not to allow lessees to transfer their plots till the final disposal of the case," the order said.

The interim stay followed a petition by a Salt Lake resident challenging the notification imposing the duty on the transfer of Salt Lake plots.

"The notification, issued on June 25, 2012, is contrary to the provisions laid down in the Constitution. The state government has no authority to collect any duty, apart from the registration fee, when a plot is transferred," Subhasish Saha, the lawyer who appeared for petitioner Sushila Drolia, submitted in the court.

The judge primarily accepted the argument and issued the interim order.

Drolia had got a 3.5-cottah-plot - BC 260 - through a will of Rani Bannerjee, the original lessee of the land. When Drolia applied for mutation of the plot in her name, she was asked to pay a duty at the rate of Rs 5 lakh a cottah. She then moved the high court challenging the notification imposing the duty.

There are about 17,000 plots in the township, apart from properties belonging to various co-operative societies, said sources in the Bidhannagar Municipality.