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One of the main functions of the Sub-Registrar’s office is to verify and work out the market value of the property dealt with in the document. The market value set forth in the document should not be less than the guideline value of the land and value of the building also should not be less than the value as worked out adopting the state PWD norms. In properties that are undervalued, the Sub-Registrar will take up registration only if the additional or correct stamp duty is paid as per the value arrived by him.

If the instrument is not duly stamped the same will be impounded and referred to Registrar of the District for taking action. Undervalued properties can also be referred to the special Deputy Collector (stamps) under section 47-A of the Indian Stamp Act for determination of the market value of the property. If any agricultural land is converted into house sites and the site value is not found in the guideline registers, then the Registering officer will inspect the site. With the help of Topo sketch and through enquiry the value of the site will be assessed. If the Registrant refuses to accept the value assessed by the Registering officer the document will be referred to the Collector.

It is open to the Registering Authority to affix a seal while releasing the original deed or any other document indicating that a reference is pending under section 47-A with respect to undervaluation and assessment of stamp duty is payable as and when the proceedings reach finality and the same will be intimated to the person who is liable to pay. Till such time the value is finalised and the deficit unpaid there will be a charge for the deficit stamp duty.

Where a person had preferred an appeal against the order of the Collector, the interest payable is at one per cent per month for the entire default period shall be calculated. In the case of Vijaya Vs Inspector General of Registration Chennai (2007 - 4 MLJ 1240) in 2007, the petitioners suffered an order passed by the special Deputy Collector (stamps). Appeal was filed before the Respondent. The Respondent rejected the appeal on four grounds. The important amongst the four reasons was that the appeal was presented after the expiry of 60 days from the date of passing the order. This was challenged by the petitioners and it was argued that the order passed on 11-8-2003 was served on the petitioners only on 14-10-2003 and the period of limitation should be calculated from then on. If it is so done then the date of receipt of the appeal will fall in time. But the Respondent has rejected the appeal taking into account the date of passing of then order. Accepting the argument of the counsel for the petitioner, the Court quashed the order of the Inspector-General. The petitioners were permitted to re-present the papers after complying with the other conditions. “The period of limitation for filing an appeal under section 47-A (10) against the final order passed under section47-A (5) or (6) of the Tamilnadu Stamps ( Prevention of Under Valuation of Instruments ) Rules 1968 would start running from the date of service of the order and not from the date of passing the order.”

The author is former National President, Institution of Valuers.

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