IMPORTANT POINT
The court established that statutory authorities must adhere to prescribed procedures when revising market values, and failure to do so violates principles of natural justice and the rule of law.

ORDER :

THE HONOURABLE MR.JUSTICE P.VELMURUGAN

The petitioner has filed the above Writ petition praying for issuance of a Writ of Certiorarified Mandamus to call for the records of the second respondent's proceedings in Circular bearing No.5247/L1/2023-1, dated March 30, 2023 (impugned circular) and quash the same as being arbitrary, illegal, unlawful and ultra-vires the provisions of the Tamil Nadu Stamp (Constitution of Valuation Committee for Estimation, Publication and Revision of Market Value Guidelines of Properties) Rules, 2010 and principles of natural justice and direct the respondents, their officers, subordinates, agents or any other persons or entities claiming and/or acting under the said respondents not to do any acts, deeds and things and/or take any action in furtherance of the impugned circular.

2. The Circular fixing the market value in respect of the property, is under challenge in this Writ Petition on the ground that there is violation of principles of natural justice.

3. Brief facts, evident from the affidavit filed in support of the Writ Petition, are as follows:

(a) The CREDAI (Confederation of Real Estate Developer's Association of India) is a Federation of registered Association, an Apex Body of the organised real estate developers/builders across India. The first petitioner is the Chennai Chapter of CREDAI, which was established in the year 2011 with a vision of transforming the landscape of the Real Estate Industry and a Mandate to pursue the cause of housing and habitat, and CREDAI, Chennai has grown rapidly over the years. With over 189 members, CREDAI, Chennai is one of the largest Associations of Real Estate developers in the Southern Region of India with over 189 members. Its members include some of the most reputed and experienced developers in the City, who are committed to promoting professionalism, transparency and ethical business practices in the Real Estate industry. The first petitioner works closely with all stake-holders, with a view to ensure fair practices in property development. The main objective of the first petitioner- CREDAI is to espouse the cause and grievances of the members.

(b) By the Act No.13 of 2008, the first respondent-Government amended the Indian Stamp Act, 1899, and brought in Section 47-AA to constitute a 'Valuation Committee" under the Chairmanship of Inspector General of Registration and such other member as may be specified, for estimation, publication and revision of market value guidelines of properties in any area in the State. The guideline value so estimated, was to form the basis for determining as to whether there was under-valuation of the property while registering the transactions pertaining to immovable property and for payment of Stamp Duty. Under Section 47-AA(2), the Valuation Committee so constituted was to be the 'final authority' on all issues of policy formulization, methodology and administration of the guidelines for fixation of market value in the State.

(c) In exercise of the powers conferred under Section 75 read with Section 47-AA of the Act, the Government of Tamil Nadu issued Tamil Nadu Stamp (Constitution of Valuation Committee for Estimation, Publication and Revision of Market Value Guidelines of Properties) Rules, 2010, vide G.O.Ms.No.75, Commercial Taxes and Registration, dated 01.06.2010 and published the same, vide Tamil Nadu Government Gazette No.165, dated 01.06.2010.

(d) From the said Rules, it reveals that Valuation Sub-Committees are constituted to function under the Valuation Committee. The Valuation Sub- Committee are constituted for each Revenue District for the purpose of estimation of revision of the market guideline vale of the properties. Further, a detailed procedure had been laid down under Section 47-AA read with the Rules, where-under, after receiving instructions/guidelines from the Valuation Committee, the Sub-Committee ought to publish the intention of estimation or revision in the local newspapers and on the Notice B