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Under-valued property can be registere HC

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In a relief to those thinking of buying or selling properties in the capital, the Delhi High Court on Wednesday ruled that municipal corporation’s Registering Officer cannot refuse to register the sale or transfer deed, even if they are under-valued against the existing circle rates.
A bench of Chief Justice G Rohini and Justice RS Endlaw said the registering authority will then have to give an opportunity to the parties to revise the valuation in “consonance with the circle rates”.
However, in the event parties do not pay the deficient stamp duty or transfer duty in terms of the circle rates, the registering authority will forward the case to the Collector of Stamps for determination of the actual value.
“…the stamp duty paid on a transfer document need not always be in accordance with the prescribed circle rates and that if the valuation and stamp duty is below the circle rates the registering authority has to first register the document and refer it to the Collector for determination of the appropriate value/ stamp duty,” the HC said.
The HC order came on a bunch of PILs challenging the Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007 and the revision of circle rates in 2011 and 2012.
One PIL, filed through advocate Anirudh Wadhwa, contended that the circle rate policy was ‘arbitrary, unreasonable and illegal’ as it prejudice an individual who owns or is looking to acquire immovable property in Delhi.
The PIL contended that in certain pockets of Delhi, the circle rates was unreasonably higher than the market value. In such cases, parties transacting in immovable properties are helpless and constrained to pay stamp duty on higher circle rate value of the property.
“Circle rates are guiding factors at best, and the judgment reinforces this. It will provide much needed relief to everyone who is looking to transact in property in Delhi,” Wadhwa told HT after the pronouncement of the judgment.
Hindustan Times, New Delhi, 24th Dec. 2015

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