The valuation of property for stamp duty purposes must be based on bona fide sales, and the mere difference in price stated in the instrument and the market price does not justify invoking the provisions under Section 47-A of the Indian Stamp Act.

These four Civil Miscellaneous Appeals are against the orders of the Inspector General of Registration dated 18.5.2010. The issue raised in these appeals are common and hence, a common order is passed.

2. The appellants herein purchased the lands in question which are situated near the Vaigai river bank. The total extent of land purchased under individual sale deeds in the year 2005 of varying extent in respect of all these appeals is 4 acres and 75 cents in Sathamangalam, Madurai District.

3. The admitted fact herein is that the lands in question are on the bank of river Vaigai on the way to Anna Nagar in Madurai. The lands are in a low lying area, 12 to 15 feet below the normal prevailing conditions of other lands. There is no proper approach road to reach the said lands. Based on the document value of the year 1995, executed by the very same vendors as arrived at by the Inspector General of Registration, fixing the value at Rs.5,00,000/-per acre vide order dated 10.11.1995, adopting the further appreciation of 15%, the appellant herein contended that the value of the said lands, at best, as on the date of sale, could be taken at Rs.11 lakhs, considering the locational and other disadvantages suffered by the said lands and the fact that the condition of the lands have not improved in any manner to draw a better value. The value had been correctly stated in the instrument of sale and hence, did not call for any revision to attract Section 47-A proceedings.

4. The appellant pointed out that even by adopting 15% hike to the value every year for 8 years, the value per acre would work out to Rs.11 lakhs only. The value of the property purchased was Rs.1,86,64,750/-for an extent of 4 acres and 75 cents. Consequently, the guideline value fixed by the Special Deputy Collector at Rs.7,38,09,980/-was without any basis. The appellant contends that apart from the value being abnormal, there are no materials to support this demand. Aggrieved by the order of the Special Deputy Collector, the appellant herein preferred appeals under Section 47-A (5) of the Indian Stamp Act before the first respondent herein.

5. The first respondent herein, the Inspector General of Registration, however, confirmed the order fixing the value at Rs.355/-per sq.ft. as the market value of the land. The said determination was made based on the consideration that the said lands are close to Anna Nagar Bus Stand and hence, based on the guideline value of Rs.477/-per sq.ft. and taking note of the location and other advantages and disadvantages suffered by the said lands, the first respondent reduced the market value from Rs.477/-per sq.ft. to Rs.355/-per sq.ft., thereby confirmed the value adopted by the second respondent. Aggrieved by the same, the present appeals have been filed.

6. Learned counsel appearing for the appellant pointed out that it is an admitted fact that the lands in question are in a disadvantageous location, they being well below 10 feet from the normal road level. Quite apart from that, the said lands have no basic amenities even though they are nearer to the Tamil Nadu Water Supply and Sewerage Board tank. Taking note of all these and that the locational disadvantages had continued even as on the date of the sale, but nevertheless adopting a further increase based on the guidelines issued by the Government at 15% per annum on the value declared on on the 1995 document relating to the sale of the nearby property, the appellant contends that the value adopted by the first respondent is excessive and arbitrary .

7. Learned counsel pointed out that the property in question was originally brought for auction by the Income Tax Department for a total sum of Rs.1.13 crores; but the auction, however, was not successful, there being no bidders for this value. In the circumstances, the adoption of the value at Rs.355/-per sq.ft., ignoring the potential for improvement of the land in future as well as the advantages and disadvantages suffered by