The central legal point established in the judgment is the obligation of government authorities to impound under-stamped documents and ensure compliance with the provisions of the Indian Stamps Act to prevent evasion of stamp duty.

1. These writ petitions have been filed by the petitioners alleging that the Central Government, Delhi Development Authority (in short "DDA") and Municipal Corporation of Delhi (in short "MCD") are willful mute spectators to the fraud amounting to several crores of rupees by way of evasion of stamp duty perpetuated by the builders and purchasers of the commercial properties built on land leased to builders by the DDA for construction and sale of commercial properties.

2. When the matter was listed before this Court on 5th March, 2008, the following order was passed:

The issue involved in this matter relates to registration of lease deedand also sale deeds. However, for being able to have a sale deed prepared, the land is to be converted from lease hold to freehold. Delhi Development Authority has to adopt a policy for simplifying the procedure for getting the leasehold rights converted to freehold rights. Counsel for the DDA states that effective steps are being taken in that regard and that in fact a modified conversion policy has already been conveyed by the Ministry to the DDA, which is being examined. It is also brought to our notice that the aforesaid policy of conversion is already in place, and that only the formula for conversion charges is to be prepared and notified by the Government of India. Let the same be done within eight weeks from today so that the aforesaid policy could be given effect to. All the respondents shall file their counter-affidavits and rejoinders particularly dealing with the issue as to whether the property transferred to a third party should not be so transferred till after executing a lease deed, so that the stamp duty payable could be received by the competent authority. Four weeks time is granted to the respondents for filing their counter-affidavits and rejoinders, if any, could be filed before the next date.

Renotify on 21st May, 2008.

3. On 15th April, 2009, this Court passed the following order:

Mr. Waziri, learned standing Counsel appearing for the Government of NCT of Delhi states that the necessary circular will be issued giving appropriate directions to MCD, NDMC and Delhi Cantonment Board as provided under Section 33 of the Indian Stamps Act, 1899 for impounding documents which are under stamped and that a copy of the circular will be placed on record.

Adjourned to 6th May, 2009.

4. Today, during the course of hearing, the learned Counsel for the Government of NCT of Delhi handed over to us in Court the Minutes of the meeting held by the Government of NCT of Delhi regarding the evasion of stamp duty by the builders/promoters. The relevant portion of the Minutes of the meeting held on 27th April, 2009 is reproduced below:

.3. Initiating the discussion, the Divisional Commissioner-cum-Chief Controlling Revenue Authority under the Indian Stamp Act 1899 briefed the contents of the said PIL about evasion of Stamp Duty by the builders/promoters and purchasers of commercial property on the land leased out by DDA, and threw light on their modus-operandi causing loss of Govt. revenue. It received its auction money/premium soon after the auction is over but no Lease Deed is executed for a long time and this is a temporary loss of revenue/Stamp Duty to the Government. They received the purchase price from the intending purchasers on installments, and on completion of the shops etc. they transfer to the purchasers, through different types of Deeds/Documents, which are neither registered nor stamped and also do not create or transfer title/ownership of the property on the purchaser. The Lease Deed prescribes various terms and conditions while selling the built up properties to the purchasers and if these terms and conditions are properly adhered to, by the DDA, the evasion of Stamp Duty can be avoided. One of the such documents has been titled as "Flat Buyers Agreement" executed between the builders and buyers. Not only this but subsequent sales are also made through this Agreement by way