CHENNAI : A sub-registrar of Perumbakam faces contempt of court for failure to refund excess stamp duty of Rs 1.9 lakh that was collected based on a registration department circular dated March 30, 2023. The circular was quashed by the Madras High Court on March 30, 2023.
“The sub-registrar has shown scant respect to the order of the division bench of this court and has given a reply indicating that he cannot follow the judgment of the division bench unless a circular is issued by the inspector general of registration,” Justice N Satish Kumar said. The high court has asked the Perumbakkam sub registrar to appear in court on April 29. J Shanti had moved the petition after the sub-registrar refused to refund the excess stamp duty.
The Madras High Court had nullified a decision taken by the IG of registration on March 30, 2023, to collect stamp duty and registration charges on the basis of guideline value fixed for immovable properties in 2012 without following a December 2023 order to follow the guidelines issued in 2017 that reduced these values by 33%.
This was challenged by the state and the division bench upheld the single bench order on March 6, 2024. But there has been no official communique from the state registration department to the sub-registrars. The Chennai chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI) had filed a writ before the Madras High Court against the circular issued by the IG in February 2023, revising guideline values to the rates that were prevalent till June 8, 2017, with effect from April 1, 2023.
A direction was also issued to the government to follow the 2017 guidelines (rates adopted from June 9, 2017, onwards) until new guidelines are framed in accordance with the law. This was challenged by the state government. The division bench comprising justices S M Subramaniam and K Rajasekar directed the state government to follow the guideline value fixed in 2017 until the valuation committee revised it following due process of law and dismissed the appeal.