High Court · 2025

Petition under Article 226 of lhe Constitutlon of lndia praying that.in the circumstances stated in tn" ,ttiOuu't tf"d therewith' the High Court may be pleased to issue a writ of certiorari, oi ,ny otr.,r"r. appropriate writ, order or direction,. calling for the records in Notice r.ro. ioyzozs''dated 06.05.2025 issued by the 3rd Respondent i.e. Sub-Registrri, rl'iup'irv' N/edchal-t\4alkaiqiri District demanding n.. ii,bg,oasi- in'respect of Document No 9307 oI 2024 Stamp Duty amount "t registered in the Office ot lui-n="Sittrar' Narapally and quash the Notice No' 16sl2}2s dated 06.05.2025, ;: inl t"ru -is being Unconstitutional'. arbitrary' illegal. contrary to the PrJsiJns oi tnOi'n Stamp Act and against Principles of natural justice IA NO: 1 OF 2025 Petition under section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Courl may be pleased to Suspend Notice No.165/2025 daLed 06.05.2025 issued by tho 3rd Respondent i.e. Sub-Registrar, Narapally, IVedchal-tvlalkajgiri District demanding Stamp Duty amount of Rs. 31 99,083/- in respect of Document No. 9307 of 2024 registered in the Office of Sub-Registrar, Narapally, pending disposal of the Writ petition Counsel for the Petitioner: SRl. E SREENIVASA RAO Counsel for the Respondents: AGP FOR STAMPS AND REGISTRATION The Court made the following: ORDER THE HON'BLE SRI JUSTTCE K.SARATH WRIT PETITION No.l 7063 of 2O2S ORDER: Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration lor the respondents. With their consent, this Writ Petition is d.isposed. of at the stage of admission itself'

2. Learned counsel for the petitioner submits that while dealing with the similar issue on today i'e' 01.O7.2025, this Court has passed' order in W'P'No'L7O37 of 2025 and reque sted to pass similar order in this matter also.

3. In terms of the ord'er passed in W'P'No'17O37 of 2025datedol.o7.2o2Sandforthereasonsalike,thiswrit petition is disposed of by setting aside the impugned notice No.165/2025 dateC 06-05.2025, issued by the respondent No.3-Sub Registrar and this order does not preclude the respondent authorities, if they want to take appropriate I t ::: 2 action for rt'covery of deficit stamp duty fror:r the petil;ioner by ibllowingl the provisions under the Indian Stamp Act, 1899. No order as to costs. 4 Re:gistry is directed to annex cop1, of. the orcler in W.P.No.77O3Z of 2O2S dated O1.07.2025 atong u,ith this crCer 5 N{isc:ellaneous petitions , if any, pending irr this \\,r1l petition, shall stand closed. //TRUE COPY// SD/- .Ch. NAGABHUSHAMBA t,rt" { SECTION OFFICER REGIsTRAR / The Principal Secretary (Stamps and Registration Saifabad. Hy,lerabad ecretarrat Buildings, The Commissio.ner and lnspector General, Registration and Stamps, Ielangana Registration Bfgvan, 4th and 5th Floor, Nizamshahi Rilad, Osmangunj. lr/.J. I\r1arket, Hyderabad - 500001 The Sub-Reg i sl ra r, Narapally, tr,4edchal-lvtalkajgiri District ].ne- Olslricl.Agg istrar, Stamps and Registration Department, I\/edcha l_ IMalkajgiri District One CC to SRl. E SREENTVASA RAO Advocate tOpUCl Two CCs to cP FOR STAI\IPS AND REGISTRATTON ,Hi,3h Court for the State of Telangana. [OUT] Two CD Copies i t To, 1 2 3 4 5 6 7 KKS GJP 6 (Along with thc copv of 1he order dated 01.07 .2025 in Wp.NO. I 703 7 OF 2025) i I I i I HIGH COURT DATED:01 10712025 u [ 0t1 im5 ('. ;lt ,.-|/ I t) ORDER WP.No.17063 of 2025 DISPOSING THE WRIT PETITION WITHOUT COSTS -:. '/./ THE HONOURABLE SRI JUSTICE K.SARATH WRIT PETITION No.1 7037 of 2o25 ORDER: Heard learned counsel appearing for the petitioner and Assistant Government Plead'er for Stamps and Registration for the respondents' With their consent, this writ petition is taken up for disposal at the stage of admission itself.

2. Learned counsel for the petitioner submits that this writ petition is hled questioning the action of the respondent No.3-Sub Registrar, Narapally' Medchal- Malkajgiri District in issuing Notice No'L67 12025 dated 06.05.2025 demanding stamp duty amount of Rs.1,61,340/- in respect of Deed of Rectification dated 11.1O.2O24 bearing Document No'9754 of 2024 presented by the petitioner, which is registered by the respondent No. 3-Sub Registrar, NaraPallY'

3. Learned counsel for the petitioner submits that the petitioner hrm is in the business of real estate which r,lr'i" , wP-17037_20 develops. the lands into residential plots and constructs residential apartments and the petitioner had entered into a Developrnr:nt Agreement-cum-Irrevocabre (lenerar power of Attorney ulde Document No.2665 l2O2O dated 1g.O3 .2O2O, r'r,ith one N{r. B.Sanjeeva Reddy, who is the land owner of an Agricultr_rral Land admeasuring Ac.O.20 gu.ntas situated in Sy.No.825lA at Korremula Viltage, Ver-rkatapur Gram Panchayat, Ghatkesar Mandal, Medchal_Matkajgiri District and the same was registered in the olflce of the Sub_ Registrar, Narapalry. He further submits 1.hat in the said Developnrent Agreement dated lg.O3.2O2O, a typographical error has treen crept, wherein it is mention,:d that the land owner is entitled for 5'yo of the residentierr prots and the petitioner is entitled to retain 42ok of the res;idential prots in the devekrped layout, which should actual11, be in the ratio of 54%, : L69/,t. In view of the same, the petir_ioner as well as the land o\rrner have executed a Deed of llectihcation for correction of the percentage of share as well as inclusion of the GPA powers in Document No.97S4/2024 dated 1r.to.2024 3 SK, J wP 17037 2025

4. Learned counsel for the petitioner submits that while it being so, the respondent No.3 had issued an impugned notice No.l67/2025 dated 06.05.2025, stating that during the course of the Internal Audit Report for the period Jttly-2O24 to October-2O24, an amount of Rs.1,61,340/- has been detected as deficit stamp duty in respect of Document No.9754 12024 and demanded the petitioner to pay the Stamp Duty to tune of Rs.1,61,340/- and if not paid, a charge would be imposed on the subject property under Section 48 of the Indian Stamps Act.

5. Learned counsel for the petitioner further submits that the said impugned notice was issr-red without issuing any show cause notice to the petitioner or calling for an explanation from him, which is contrary to Section 41-A of the Indian Stamps Act and requested this Court to allow the writ petition by setting aside the impugned notice No.l67 12025, dated 06.05.2025 issued by the respondent No.3.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registrations basing wP 17037 2025 on the \\rritten instructions submitted by the respondent No.3-Sub Registrar uide Lr.No.216 I 2025 daLted 26.06 .2025, submits that a Deed of Rectification vide Document No.9754/2O24, dated lO.lO.2O24 was e.xecuted by the petitioner and his vendor for an alteration of the apportionment of the developing areas as 54ok : 46Y" frorn 57o/o : 42)k aiong with the inclusion of GPA powers/clauses which wr:re omitted in the Development ,\greement-cum- GPA 7 Learned Assistant Government Pieader for Stamps and Registration further submits that the correction of the ratio of the developing lands between the land orvrLers and the petitioner is 'material' alteration, which attracts the stamp duty under Section 41 of the Indian Stzrmps Act, 1899. In the rectilication deed submitted by the petitioner and the land ou,ner, it is clearly mentioned that the subject land is an agricrrltural land and 1S being converted into non-agricultural land in Nala proceedings No.21000 13541, dated 15.Ol.'2,O2l , issued by the Tahsildar & Joint Sub Registrar, Ghatkr:sar Mandal and ,.,.., J,/.,,: the same has been pointed out in the Internal Audit Report. 5 SK, J wP 17037 2025 Basing on the Internal Audit Report, the respondent No.3- Sub Registrar has issued Notice No.167 12025, dated

06.O5.2025 for collection of the dehcit Stamp Duty amount of Rs. 1,61,340 I -, which was a loss of revenue to the Government and as such there is no illegality and arbitrariness in the notice dated 06.05.2025, issued by the respondent No.3 and requested this Court to dismiss the present writ petition.

8. After hearing both sides and on perusing the entire material available on record, this Court is of the considered view that there is no dispute with regard to the registration of the document presented by the petitioner with their vendor in Document No.2665/2O2O dated

18.03.2020 and also Deed of Rectihcation bearing Document No.9754 12024 dated 11.1O.2O24. There is no dispute with regard to the facts of the subject document. The respondents have issued impugned Notice No.767 12025 dated 06.05.2025 for pa5rment of deficit stamp duty with regard to the Rectification Deed executed 6 wP 17037 20 by the petitioner and their vendor. Without following the rules prescribed under Section 41 of the Indian Stamp Act, the respondent No.3 has isstred impugn,:d notice dated

06.05.20:25, which is based on the Internal Audit Report for the period ol July-2O24 to October 2024 emd directed the petitioner- to pay deficit stamp duty of Rs.1,61,340 l- for execution. of the Document bearing No.9754 12024 within seven (07) days, if not, a charge will be created against the subject property under Section 48 of the Indian Stamp Act,

9. Section 41-A of the Indian Stamps Act, 1g99 is extracted hereunder " Section 47-A - Recoveru of stqnD dutu n.ot leuied or short levied: /11 Wh.ere afier the commencement of the InLTian Stamp tAndl-trrt Pradesh Arne ndment) Ac| 1986, onA i.n::tt-ument chargeable u,ith dutA has not been dulg .stamped and registered bg ang registering offi.cer bg ,mista.ke and remarked as such bg the collector or ang audit partg, the Collector mag, within fi.ue qears from th<z date of registration, serue a notice on the. person bg utltom the dutA Lt)as pagable requiing hirn to show cause tuhg (the amount required to make up the deJi.cit :;tamp duty should not be collected_ from him along with o ltenaltg of three times of the deficit stamp dutg) 7 SKJ wP 17037 2025 Prouided that uhere the non-pagment tuas by reason of fraud, collusion or anA u-tilfulmis-statement or suppression of facts or controuention of ang prouisions of this Act or the rules made thereunder u.)ith intent to euade payment of dutg, the Collector mag, u.tithin ten years from the date of registration, serue a notice on such person to shou.t cause u,hg (the amount required to make up the deficit stamp dutA should not be collected from him olong with a penaltg of three times of the deficit stamp dutg) (2) The Collector or anA officer specificctllg authorbed bg him in this behalf shall, after con sideing the representotion if ang, made by the person on u.thom notice is serued under sub-Section (1), determine bg on order (the amount of dutA and tl.Le penoltg) due from such person (not being in excess of the amount specifted in the notice) and thereupon such person stnll pag the dmount as determined. On pdAment of the (amount) the Collector shall add a certificate under Sec. 42. (3) Ang person aggrieued bg on order under sub-Section (2) mag prefer an appeal before the (Chief Controlling Reuenue Authoitg), Andhra Pradesh, Hgderabad tuithin three months from the date of such order. (4) Ang (ctmount) poyoble under this section shnll be recouered os an atrear of land reuenue."

10. On a perusal of the Section 41-A of the Indian Stamp Act, 1899, it clearly shows that where the non- payment of stamp duty was by reason of fraud, collusion or any willful misstatement or suppression of facts or a s wP 17037.2025 contravention of any provisions of this ,\ct or the rules made thr:reunder with intent to evade payrnent of duty, the Collector m.y, within ten years fronr the date of registratlon, serve a notice on such persol to show cause stating tl-rat why the amount required to make up the dehcit stamp duty should not be collected fronL him/her along with a penalty of three times of the deficit stamp duty and further after issuance of the show c,1use notice as prescribed supra, the Collector by an order, should determine the amount of duty and the penalty due from such person and thereupon, such person shali pay the amount zrs determined. 1 1. tn the instant case, it clearly shows that the respondents have not followed the procedul.e as per Section 41-A of the Indian Stamp Act, 1899 anl also nowhere mentioned that they have followed the said procedure. In view of the same, the impugned notice issued by the respondenl. No.3 in Notice No.l6T12025 dated 06.05.2O2S for payment of deficit stamp duty is liable tc,be set aside. If the respondent authorities want to take appropriate action : I I l 9 SK, J wP 17037 2025 for recovery of dehcit stamp duty, they have to follow the procedure as contemplated under law'

12. In view of the above findings, this writ petition is disposed of by setting aside the impugned notice No.167 12025, dated 06.05.2025, issued by the respondent No.3-Sub Registrar and this order does not preclude the respondent authorities, if they want to take appropriate action for recovery of deficit stamp duty from the petitioner by following the provisions under the Indian Stamp Act'

13. Miscellaneous Petitions, if any, pending in this writ petition shall stand closed. No order as to costs Date:Ol.O7.2025 JUSTICE K.SARATH