On Thursday, March 7, the Madras High Court directed the Tamil Nadu government to maintain the property guideline values established in 2017, which were reduced by 33%, until the next revision. This decision ensures that property transactions and assessments in Tamil Nadu will continue to operate based on the reduced values until an updated guideline is implemented.
Madras: On Thursday, March 7, 2023, the Madras High Court set aside a decision made by the Inspector General of Registration on March 30, 2023, regarding the collection of stamp duty and registration charges. This decision was based on guideline values established for immovable properties in 2012, disregarding a 2017 directive to reduce those values by 33%.
A Division Bench comprising Justice S.M. Subramaniam and Justice K. Rajasekar upheld an order issued by Justice P. Velumurugan on December 18, 2023, dismissing a writ appeal filed by the state government. The appeal challenged the single judge’s decision to nullify the Inspector General’s circular due to procedural deficiencies.
The Bench emphasized that the government could only revise the guideline values of properties through a state-level valuation committee, following the procedures outlined in Section 47AA of the Indian Stamp Act, 1899. These revisions must be based on recommendations from subcommittees.
Despite the government’s argument that the process of determining new values through committees would take considerable time, and thus it reverted to the 2012 values to immediately boost public revenue, the court was unconvinced.
The judges said,
It defies logic to hear the State government say the value of the properties had increased exponentially since 2012 but at the same time, return back to the values fixed 12 years ago. They also said, the people at large could not be burdened by suddenly reversing the 2017 reduction.
The court directed the government to adhere to the 2017 decision until the guideline values are appropriately revised through the established legal process. However, it ruled that individuals would not be entitled to refunds for stamp duty paid based on 2012 valuations for instruments registered between March 30, 2023, and March 6, 2024.
