The Collector of Stamps must adhere to previous valuations and cannot apply new ASR for determining market value in cases remanded for fresh adjudication.

JUDGMENT:

1. Rule. Rule is made returnable forthwith. With the consent of learned counsel appearing for the parties, petition is taken up for final hearing and disposal.

2. Petitioner has filed this petition taking an exception to the Order dated 16 September 2021 passed by Collector of Stamps, Andheri adjudicating the stamp duty leviable on Deed of Conveyance executed in Petitioner’s favour at Rs. 1,97,95,100/- by fixing the market value of the property at Rs. 41,69,02,000/-. Earlier, the Collector had passed order dated 16 March 2017 fixing the market value of the land at Rs. 30,55,88,000/- and had demanded stamp duty of Rs. 1,52,77,900/-. Petitioner filed Writ Petition No.714 of 2018 challenging order dated 16 March 2017. The issue before this Court in that Petition was about applicability of Proviso to sub-Rule 6 of Rule 4 of the Maharashtra Stamp (Determination of True Market Value of Property) Rules 1995 (Maharashtra Stamp Rules, 1995) under which, pre-determined value in a sale conducted by the Government or Semi Government body or Government Undertakings or a Local Authority is required to be treated as true market value of the property for levy of stamp duty. This Court held that sale conducted by the Charity Commissioner is covered under the first Proviso of Rule 4(6). This Court accordingly remanded the proceedings before the Collector of Stamps for adjudication of stamp duty payable by taking into consideration the first Proviso to Rule 4(6) and Circular dated 13 October 2006. In remanded proceedings, Respondent No.2 conducted inquiry into the manner of sale held by the Charity Commissioner and the price at which it is sold vis-à-vis the market value as per the Annual Statement of Rates (ASR) and has held that the market value as per ASR will have to be considered for levy of stamp duty. Respondent No. 2 has however applied ASR for the year 2021 and increased the market value to Rs. 41,69,02,000/- which was earlier fixed at Rs.30,55,88,000/- in previous order and has called upon Petitioner to pay Rs. 1,97,95,100/- as stamp duty.

3. A brief factual narration as a prologue to the Judgment would be necessary. Property bearing Survey No.8, Hissa No.1 (part) corresponding CTS No.201 admeasuring 3531.30 sq. mtrs. at village Marol, Mumbai (the land) was owned by A. H. Wadia Trust, which is public trust registered under the provisions of Maharashtra Public Trusts Act, 1950 (the Trust Act). The trust land was apparently affected by large scale encroachments. Due to its inability to clear the encroachments, the Trust decided to alienate the land and published a Notice in newspapers for sale thereof. The Trust obtained valuation report in respect of the Trust property from M/s. C. D. Vaidya & Co., a Government Architect and Valuer, who valued the Trust property at Rs.1.28 Crores. Petitioner submitted an offer for purchase of the land, which was lower than valuation given by the highest bidder. The Trust decided to accept the valuation of highest bidder of Rs.1.60 Crores and filed an application under Section 36(1)(a) of the Trust Act before the Charity Commissioner seeking his approval. Some individuals intervened in the proceedings before Charity Commissioner, who directed to conduct fresh auction to get the best value in respect of the land. In the fresh auction so conducted, Petitioner offered to purchase the land at Rs. 2.10 Crores and by Order dated 26 April 2016, the Charity Commissioner accorded sanction for sale of the land to Petitioner on ‘as is where is basis’ and ‘as it is where it is basis’ for consideration of Rs. 2.10 Crores.

4. Petitioner submitted unexecuted Conveyance for adjudication to the Collector of Stamps, Andheri, who called for a report from Deputy Director of Town Planning regarding value of the land, who assessed the same at Rs. 30,55,58,000/-. The Collector of Stamps passed Order dated 16 March 2017 determining market value of the Trust property at Rs.30,55,88,000/-and adjudicated the stamp duty payab