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Deficit Stamp duty & Penalty – Property in Ambey Valley in Court Committee in auction

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The petitioners had purchased the land with building in Ambey Valley City, Pune, as the highest bidder in the auction as per the tender issued by the Sale-cum-Monitoring Committee constituted by the Supreme Court of India.

The value of the said properties was Rs.16,72,11,000/- as per the valuation by the Sale Committee.   On 9.6.2022, the sale certificate was issued.  The petitioners approached the Respondent No.3 for registration of the sale certificate.

After repeated follow-up for about 18 months, the impugned demand notice dated 7.2.2024 for Rs.83,60,550/- with penalty of Rs.23,41,000/- was issued in exercise of powers under Section 33 read with Section 32A of the Maharashtra Stamp Act.

Maharashtra Stamp (Determination of True Market Value of the Property) Rules, 1995

The question is whether in a case where sale is conducted by a Court or under the aegis of Court, can the Stamp authorities independently determine true market value of the property and levy stamp duty.

HELD that the stamp authorities cannot sit in appeal over the decision of the Court permitting sale of property in auction at a particular price.   The logic is that an auction of a property by the Court is only one of the most transparent methods by which the property can be sold.  In a court auction, often the price obtainable may be slightly less as any bidder has to take care of a scenario where the auction may be challenged which could result in passage of time in obtaining perfection of title with also the possibility of it being overturned.

Judgment dated 23.10.2024 of the Division Bench of the Bombay High Court (AS) in Writ Petition No.3651 of 2024 of the Trident Estate Private Limited and another  Vs.  The Office of Joint District Registrar Class-1, Collector of Stamps, Pune-Rural and others.

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