Demerger orders for projects under SEZ are exempt from stamp duty, including non SEZ lands used for SEZ purposes, reinforcing the interpretation of beneficial legislation.

ORDER :

1. W.P.No.17059 of 2024 has been filed seeking for a Writ of Declaration to declare that during the subsistence of a Special Economic Zone (SEZ) status, all the instruments pertaining to the lands covered under the planning permit dated 23.6.2018 issued by the Chennai Metropolitan Development Authority (CMDA) and the building permit dated 26.10.2018 issued by the Commissioner of Pallavaram Municipality in favour of the developer/co-developer for the purpose of activities of the SEZ are exempt from payment of stamp duty under Section 3 of the Indian STAMP ACT , 1899 (for short, the STAMP ACT ).

2. W.P.No.17061 of 2024 has been filed seeking for the issuance of a Writ of Mandamus directing the third respondent to admit the Scheme of Arrangement dated 19.8.2022 issued under Section 233 of the COMPANIES ACT , 2013 and the corrigendum dated 15.11.2023 issued by the Regional Director, South East Region (SER), Ministry of Corporate Affairs (MCA), Hyderabad and to register the same in accordance with the Registration Act, 1908.

3. W.P.No.19636 of 2024 has been filed challenging the letter dated 18.6.2024 issued by the third respondent to the second respondent and for a consequential direction to the third respondent to admit and register the demerger orders, which are kept pending, under the Registration Act, 1908.

4. Heard both.

5. The facts leading to filing of these writ petitions are as follows:

(i) One M/s. SNP Infrastructure LLP (hereinafter called the land owner) was the absolute owner of large extent of lands measuring 29.485 acres at Zamin Pallavaram Village, Pallavaram Taluk, Kanchipuram District. At the instance of the land owner, an application was made to the Ministry of Commerce and Industry (MCI), Government of India (GoI) for development, operation and maintenance of a Sector Specific Special Economic Zone (SEZ) for Information Technology/Information Technology Enabled Services (IT/ITES) Sector in the subject properties under the provisions of the Special Economic Zones Act, 2005 (for short, the SEZ ACT ).

(ii) The MCI, through the notification dated 12.2.2008, notified an extent of 27.53 acres to be the SEZ lands and another extent of 2.415 acres as the non SEZ lands. As per the said Notification, the land owner could develop the subject lands either by itself or through a co- developer. Pursuant to that, the land owner approached the petitioner to be the co-developer for the subject lands in respect of the said project. The petitioner was also approved as the co-developer vide approval dated 12.7.2016 issued by the MCI, GoI. Based on that, the land owner entered into a co-developer agreement with the petitioner on 20.5.2016 and leased out the subject properties in favour of the petitioner vide two lease deeds both dated 09.11.2016 registered as doc.Nos.10145 & 10146 of 2016 on the file of the third respondent. Both the lease deeds were exempt from payment of stamp duty at the time of registration.

(iii) That apart, the land owner also gifted certain portions of the subject lands measuring an extent of 1502.306 sq.meters in comprised T.S.Nos.83, 84/1, 84/3 and 85/1 and another extent of 910.51 sq.meters comprised in T.S.Nos.44/1 Part, 47/1 Part, 48/1 Part and 49/1 Part t