The respondent's valuation of stamp duty was upheld, affirming the legal basis of the Rs. 1310/- per square foot rate despite claims of arbitrariness and lack of hearing.

JUDGEMENT

The appellant has filed this appeal to set aside the order dated 07.03.2022 in No.27347/E1/2015 passed by the 1st respondent herein.

2. Challenging the impugned order passed by the first respondent in proceedings No.27347/E1/2015, dated 07.03.2022, the appellant was directed to pay a sum of Rs. 1310/- per square feet as stamp duty, which is significantly higher than the prevailing guideline value of Rs. 878/- per square feet for the land purchased during the period 2013–14. The order was passed without affording a proper opportunity to the appellant. Hence, he has approached this Court, challenging the validity of the said impugned order.

3. Brief Facts of the Case: The appellant, along with his wife, in their individual capacities, purchased an extent of 10.00 acres of agricultural land at Survey No.3/1B1,1B2,4/1,3,4,5,5(1)(2),(3),(4),(8),6/1,6/2B and 11/1, situated in JEE City, Kaveri Road, Devadanam Village, Trichy. The said land is located approximately 10 km from Trichy Railway Station and lies on the road leading to Kallanai. The property is situated 10 feet below the road level, covered with thick bushes, and partially used as a burial ground. The land is classified as tarisu (wasteland) and lies between Kallanai Road and the Cauvery River. On 30.10.2013, the entire extent of 10 acres and 6 cents was transferred to M/s. LSR Properties India Ltd., where the appellant and his wife serve as Managing Directors. This was done through the execution of 11 sale deeds, numbered from Document Nos. 3931/2013 to 3941/2013, for which prevailing stamp duty was paid. However, the Joint Sub-Registrar III, Trichy, kept the documents pending under Section 47-A proceedings of the Indian Stamp Act .

4. On 03.03.2014, the Sub-District Collector (Stamps) (R2 herein) passed an order under Section 47A (i), fixing the value of the property at Rs. 310/- per square feet, taking into account the prevailing guideline value. He directed the appellant to pay a differential stamp duty of Rs. 51,94,835/-, which the appellant duly paid, and the 11 sale deeds were subsequently registered. Thereafter, by letter dated 15.06.2015, the District Registrar (R3) recommended to the first respondent that the value be revised to Rs. 520/- per square foot based on the guideline value of the same property. Based on this, the first respondent issued a show-cause notice to the appellant to provide an explanation.

5. On 09.10.2020, the first respondent passed an order arbitrarily fixing the value at Rs. 1310/- per square feet, without giving adequate opportunity for the appellant to be heard. Notably, no personal hearing was afforded during the COVID-19 pandemic. Although 30 days were granted to file an appeal, the appellant preferred an appeal on 14.12.2020, requesting confirmation of the earlier order passed by the Special Deputy Collector (Stamps), which had fixed the rate at Rs. 310/- per square feet. However, the first respondent, without considering the recommendations of the District Registrar and by erroneously comparing the subject property with nearby developed residential areas such as Sanjeevi Nagar, fixed the present guideline value at Rs. 1310/- per square foot. This is incorrect, as the transaction took place in the year 2013, and Sanjeevi Nagar, which is situated approximately 300 meters away from the appellant’s land, is a fully developed housing plot area, whereas the appellant’s land was undeveloped, covered in bushes, and never promoted for residential use.

6. At the time of argument, the learned counsel for the appellant submitted additional grounds of appeal. He pointed out that nearly two years