( 1 ) PETITIONER purchased plot No. 8 in Aswini Layout situated in T. S. No. 1/part, block-F, near Padmalaya Studios, Jubilee Hills, Hyderabad for Rs. 15,98,400/- in a public auction conducted by the 1st respondent. As per the terms and conditions of the auction, the highest bidder has to deposit development charges payable to the Hyderabad Urban Development Authority (HUDA) also. As per the communication received by him petitioner paid Rs. 1,89,000/- towards development charges. He was directed to deposit the amount required for purchase of non judicial stamp for engrossing the sale deed in respect of the plot purchased by him in his favour, by including the amount of Rs. 1,89,000/- paid towards development charges also, petitioner filed this petition.

( 2 ) AT the time of admission an interim direction for registration of the document was granted on condition of the petitioner undertaking to make good the deficit stamp duty in the event of the petitioner not succeeding the petition and it is stated that the document in favour of the petitioner is registered.

( 3 ) SINCE the petitioner purchased the property he has to pay the stamp duty for obtaining the conveyance from the vendor i. e. , first respondent. Conveyance is defined in Section 2 (10) of the Indian Stamp Act (the Act) as:"conveyance" includes a conveyance of sale and, every instrument and every decree or final order of any civil Court, by which property, whether movable or immovable or not estate or interest in any property is transferred to or vested in or declared to be of any other person, inter vivos and which is not otherwise specifically provided for by Schedule 1 or schedule 1-A of the Act as the case may be". Stamp duty payable on conveyance as per entry 20 of Schedule 1-A of the Act is: (a) Where the amount or value of the consideration for which conveyance as set forth in the instrument or the market value of the property which is the subject-matter of the conveyance whichever is higher but does not exceed rs. 50/-, proper stamp duty to be paid is Rs. 2. 50/-; (b) Where it exceeds Rs. 50/- but does not exceed rs. 1000/-, the stamp duty is five rupees for every one hundred rupees or part thereto; (c) Where it exceeds Rs. 1000/-, the same duty payable is as under clause (b) for the firstrs. 1000/- and for every Rs. 500/- or part thereof in excess of Rs. 1000/- twenty five rupees.

( 4 ) SECTION 47a of the Act, which lays down the procedure to be followed in case of under valuation since the proviso to Section 47a (6) of the Act lays down that in respect of instruments executed by or on behalf of the Central or State government and other authorities mentioned therein, the market value of the property shall be the value shown in the instrument, the later part of para (a) of the entry 20 to Schedule 1a of the Act does not come into play and so the stamp duty has to be paid only on the value of the consideration set forth in the instrument.

( 5 ) DEVELOPMENT charges levied by the HUDA are as per Section 27 of the a. P. Urban Areas Development Act, 1975, and does not form part of the sale consideration and so no stamp duty need be paid thereon by the petitioner for obtaining a conveyance in her name.

( 6 ) IN view thereof the action of the respondents in calling upon the petitioner to deposit stamp duty in respect of Rs. 1,89,000/- paid by her towards development charges to the HUDA, is unwarranted as petitioner not liable to pay that amount as per the provisions of the Act. In the result, the Writ Petition is allowed with costs and the rule nisi is made absolute.

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