Department cannot hold enquiry on market value after registration: Madras HC

The Madurai Bench of the Madras High Court has ruled that Registration Department cannot hold an enquiry to find out the market value of a property after registration of sale deed to find out if correct percentage of stamp duty and registration charges had been made.

Justice S. Nagamuthu said as per Indian Stamp Act, 1899 and Tamil Nadu Stamp (prevention of undervaluation of instruments) Rules, 1968, officers could enquire only before registration. The judge held that the officer concerned could conduct an enquiry to ascertain the market value of the property by verifying documents, including the guideline value prescribed by the government.

After the enquiry, he should demand payment of excess stamp duty and registration charges, if any. If the people who had presented the document were willing to pay the additional amount, the officer should accept the money, register the sale deed and release the document.

If the executants filed a protest and disagreed with the market value determined by the Sub-Registrar, the deed should be registered and referred to the Collector under Section 47A of the Stamp Act for arriving at the correct market value.