The High Court · 2025

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 HONOURABLE SRI JUSTICE K.SARATH WRIT PETITION No.17O37 of 20.25 ORDER: Heard learned counsel appearing for the petitioner and Assistant Government Pleader for Stamps and Rcgistration for the respondents. With their consent, this u,rit petition is taken up for disposal at the stage of admission itsell

2. Learned counsel for thc petitioner submits that this writ petition is hled questioning the action of the rcspondent No.3-Sub Registrar, Narapally, Medchal- Malkajgiri District in issuing Notice No.l67l2025 dated

06.05.2025 demanding sta_rnp duty amount of Rs. I ,61 ,34O / - ln respect ol Deed of Rectihcation dated ll.lO.2O2,I 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 pctitioncr submits that vc pctition er firm is in the business of rea,l estate which o .SK, J wP 17037 20 2s develops the lands into residential plots , rnd constructs residential apartments and thc petitioner harl entt:red into a Developmr:nt Agreement-Cum-lrrevocable G,.rneral Power of Attorney uide Document No9665 /2O2O daled 18.03.2O2O, with one Mr. B.Sanjccva Reddy, who is the lernd ownet' of an Agricultural Land admeasuring Ac.O.20 guntas situatcd in Sy.No.825/A at Korremula Village, Venl<atapur Gram Panchayal., Ghatkesar Mandal, Medchal-Matkajgiri District and the saine was registercd in the offic c of the Sub- Registrar, Narapally. He further submits tlrat in the said Developmr:nt Agreement datecl 18.O3.2020, 1 typttgraphical error has been crept, wherein it is mentione,l that the land owner is r--ntitlecl for 587o of the residential plots ald the petitioner is entitled to retain 42ok of the res:rdential plots in the developed layout, which should actually be in th<: ratio of 54ok '. 46'k. In view of the same, the petitroner as 'uvcli as the land owner have executcd a Deed of F,lectification for correction of the percentage of share as well as inclusion of the GPA powers in Document No.975'+ /20.24 dated tt.1o.2024 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.167l2025 dated 06.O5.2025, stating that during the course of the\nterna-t Audit Report for the period July-2O24 to October-2O24, an amount of Rs.1,6l,34Ol- has been detected as dehcit stamp duty in respecl o[ Document No.9754 12024 and demanded the petitioner to pay the Stamp Duty to tune of Rs.1,6 1,340/- 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 issued without issuing any show cause notice to the petitioner, or calling lor an explanation from him, which is contrar5r to Section 41-A of the Indian Stamps Act and requested this Court to allor.,"' the writ petition by setting aside the impugned notice No.167 /2025, dated 06.05.2025 issued by the respondent No.3.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registrations basing 4 .sl(, J ' wF t7037 2025 on the written instructions submitted br the respondent No.3-Sub Registrar uide Lr.No.2l6 12025 dated 26.06 -2025, submits that a Deed of Rectification vide Dc,cument No.9754 12024, d.ated 10.\0.2024 was r:xecuted by the petitione'r and his ve ndor lor an alteration of the apportionment of the developing areas as 54ok : 460/o ftom 58oh : 4iZo/" along with the inclusion of GP.r\ powers/clauses which u,ere omitted in the Development Agrer:ment-cum- GPA. 7 Learned Assistalt ()overnrrrent Pleader for Stamps and Registration further Sullmits that the correction of the ratio ol the developing lernds betr,'een the land owners and the petitioner is a 'material' all.eration, t which attracts the stamp duty under Sr:ction 4l of the Indian Stamps Act, 1899. In the rr:ctification deed submitted by the petitioner and the land o'*ner. it is clearly mentioned that the subject land is an agrir:ultural land and 1S being converted into non-agriculturzrl land in Nala proceedings No.21OOO1354 1, datecl 15.O1, 2O2l , issued by the Tahsildar & Joint Sub Registrar', Ghatl.,,esar Mandal and 5 SK, J wP 17037 2025 the same has been pointed out in the Internal Audit Report. Basing on the Internal Audit Report, the respondent No.3_ Sub Registrar has issued Notice No.767 /2025, dated 06.05.2025 for collection of\he deficit Stamp Duty amount of Rs. I ,61,340 / -, which was a loss of revenue to the Government ald as such there is no illegality and arbitrariness in the notice dated 06.05.2025, issued by the l 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, thi\ Court is of the considered view that there is no dispute with regard to the registration of the document presented by th'e petitioner with their vendor in Document No.2665/2O2O dated 18.O3.2O2O and also Deed of Rectification bearing Document No.9754/2024 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 /2025 dated 06.05.2025 for payment of deficit starnp duty with regard to the Rectification Deed executed 6 \. SK, J wt, 170.37_2025 by the petitioner ald their vendor. Without follorving the rules prescribed under Section 41 of the Itrdian Stamp Act, the respondent No.3 has issued impugrred rrotice dated

06.O5.2025, which is base{ on the Internal Audit Report for the period of Jwly-2O24 to October 2024 and directed the petition<:r to pay dehcit stamp duty ol I:1s.1,61,34O1- fot execution of the Document bearing No.9754 l'2O24 within seven (07) days, if not, a charge will be cr,:ated against the subject property under Section 48 of the Irrdian Stamp Act,

9. Section 4i-A of the Indian Starnps r\ct, 1899 is extracted hereunder: " Section 47-A - Recover-u of stdmD dutu not levied or short leaied: (1) Where afier the commencement of the h dian Stamo (Andfuo Prodesh Amendment) Act, 1986, onA instrument chargeable uith dutA has nr. i been. dutg stamped and registered bg any reg[stei'Lt 1 offi':er by mistoke oid remarked as sztch b!/ the coiL)ctor or onA audit partg, the Collector mag, uithin Jluc qear:; frorn the date of registrtttion, serue a notice on tt c per::on bg u-thom tLLe dutA uos payabLe requiring \, m to shoru cause u.thg (the amount required to m.ake to the deficit stamp duty should not be collected from hi t alottg tttith. a penaltg of three times of the defcit stamp l.uty) 7 SKJ wP 17037 2025 Prouided that where the non-paAment was bA reason of fraud, collus[on or anA uilfutmis statement or suppression of facts or contrauention of ang prouisions of this Act or the ntLes made thereunder u.tith intent to euade paAment of dutg, the Collector mag, within ten gears from the date of \pgistration, serDe a notice on such person to shotu ccLuse tuhy (the amount required to make up the defcit stanlp d"utll slrould not be coltected from him aLong tuith a penaltg of three times of the deficit stctmp dutg) (2) The Collector or o-ng offtcer specif.cally authorized by him in this beLLau' shcrll. after consideing the representaLion if anq, mcr)e bq the person on tuhom notice ts serued under sub-SecLion (1), detennine bg an order (the amount of duty ancl the penalty) due from such person (not being in exces-s of the amount specifi.ed in the notice) ond thereupon such person sLnll pay the amount as detennined. C)rt pttg ment of the\ (amount) tIrc CoLlector shall add a certr,ficate under Sec. 42. (3) Any person aggieued bg an order under sub\Section (2) mag prekr an appeal before the (Chief Cont)oiling Reuenue Authoritu), Andhru Prarlesh, Hyderabad within three months from the date of such order. (4) AnA ftimount) paaable undt,r thb section shall be recouered as on orear of land rcuenue."

10. On a perusal of the Scction 4l-A of the Indian Stamp Act, 1899, it clearly sho\\,s that where the non- payment of starnp duty was by reason of fraud, collusion or any willful misstatement or sLrppression of facts or a .\ -(iK, J t'' I' 1 1037 -1025 contraventlon of arly Provlslons of this Ac. ctr lhe rules made thert:under with intent to evade paymerlt ol-duty' the within ten Years from tht: dale of person to shon' cause Collector maY, registratioll, seflr'e a notice o\ "ucn stating that why the amount required to makr: up Lhe deficit stamp du[y should not be collected from him/her along with a penalty of three times of the deficit staml) duly and further after issuance of the show car lse notice as prescribecl supra, the Collector by an ordt:r' should determine the amount of duty and the perralt-r' drtt: from such person and thereuPon' such Persor shall PaY the amount as determined 1 1. In the instant case, it clearlY rhou,s that respondents have not followed the procedulo ils per Section 41-A of the Indian Stamp Act' 1899 ar-r'l also trowhere mentione,d that they have followed the sai'l l;rt>cedtrrc' In view of the same, the impugned notice issued by the respondent No.3 in Notice No'167 12025 d'rtcd 06'Cts'2025 for payment of deficit stamp duty is liable 1'r be set zrside' If the respondent authorities want to take aPp|ollriat': action 9 SK, J wP 17037 202s for recovery of deficit stamp duty, they have to follow the procedure as contemplated under law

12. In view of the above hndings, this writ petition is disposed of by setting aside the impugned notice No.767 /2025, dated 06.O5.2025, issued by the respondent No.3-Sub Registrar and this ordcr does not preclude the respondent authorities, if they want to take appropriate action for recovery of deficit starnp duty from the petitioner by following the provisions under the Indian Stamp Act, 1899

13. Miscellaneous Petitions, if any, pending in this writ petition shall stand closed. No order as to costs. //TRUE COPYil .. SD/. N.SRIHARI EPUTY REGISTRAR To, SECTION OFFICER '1 . The Pri ncipal Secretary (Stamps and Registratio tariat Buildings, r General of Saifabad, Hyderabad The Commissioner and lns p Registration and Stamps, Telangana Re gistration Bhavan,4th and 5th Floor, Nizamshahi Road, Osman gunj, M.J. Ma rket, Hyderabad - 500001 The Sub-Registrar, Narap ally, A/edchal-tValkajoiri District The District Registrar, Sta mps and Registration Department, Medchal- Malkajgiri District 2 J Malkajgiri Diskict 4- The District Registrar, Stamps and Registration Department, ti/edchal- 5. One CC to SRl. E SREENIVASA RAO Advocate [OPUC] 6. Two CCs to GP FOR STAMPS AND REGTSTRATTON ,High Court for the 7. Two CD Copies State of Telangana at Hyderabad [OUT] BM GJP o ''t I HIGH COURT DATED:01 10712025 \ ORDER WP.No.17037 of 2025 :-- 1Ii SEP M ) .../Y a.)a \ ,;, _:0 .:- '.-/-/ :5-/ DISPOSING OF THE WRIT PETITION WITHOUT COSTS