Industrial land guideline value upheld based on location, surrounding factories, and usage, overriding prior comparable sales.

4.The Sub-Registrar, Manavala Nagar, Thiruvallur Taluk and District. ... Respondents PRAYER : Civil Miscellaneous Appeal filed under Section 47-A (10) of the Indian Stamp Act, 1899, prays to set aside the order dated 31.01.2024 in proceedings Na.Ka.No.1800/N1/2023, on the file of the 1^st respondent.

For Appellant : Mr.P.H.Manoj Pandian, Senior Counsel for AAV Partners For Respondents : Mr.C.Sathish Government Advocate

JUDGMENT

The appellant has filed this appeal to set aside the order dated

31.01.2024 in proceedings Na.Ka.No.1800/N1/2023, on the file of the 1^st respondent.

2. The brief facts of the case:

The subject matter of the appeal, hereinafter referred to as the Schedule Property, comprises vacant land measuring a total extent of 2.47 acres, situated in Melnallathur Village and Adhigathur Village, Tiruvallur Taluk, Tiruvallur District, Tamil Nadu, covered under Patta Nos. 40 and 27. The lands are comprised in various survey numbers and extents as follows: Survey No. 19 (0.44.50 hectares / 1.10 acres) and Survey No. 20 (0.04.50 hectares / 0.11 acres) in Melnallathur Village; and Survey Nos.

250 (0.03.50 hectares / 0.09 acres), 264 (0.16.00 hectares / 0.40 acres), and 265 (0.31.00 hectares / 0.77 acres) in Adhigathur Village, aggregating to a total extent of 2.47 acres.

3. Originally, the said lands belonged to the Government and were classified as “Vandipathai” and “Salai”, forming part of an old road stretch situated within the premises of M/s. Hindustan Motor Finance Corporation Limited (HMFL). HMFL proposed to discontinue the usage of the old road and, in lieu thereof, offered to construct a new road along the outskirts of its premises at its own cost and to hand over the same to the Highways Department in exchange for the Government lands occupied by the old road. Accordingly, the exchange was effected through G.O. (Ms.) No. 132, Revenue & Disaster Management Department (Land Disposal Wing – LD 1(2)) dated 10.04.2018, whereby Government lands measuring 2.47 acres in the aforesaid survey numbers were transferred to HMFL in exchange for patta lands measuring 2.35 acres classified as Manavari in Survey Nos. 16/16B and 261/3B, belonging to HMFL, subject to the condition that the differential market value of Rs. 7,70,000/- be paid by HMFL to the Government.

4. While so, the appellant's company proposed to purchase the entire property owned by HMFL, including the scheduled property. Accordingly, the appellant executed the sale deed dated 15.05.2018 with HMFL for a total consideration of Rs.2,57,38,054 (page No.21, para 7) and presented the said sale deed for registration on 07.02.2019 on the file of R4 Sub-Registrar, Manavalan Nagar, and the same was assigned Pending Document No.251/18. The market value of the property was arrived at Rs.238.99 per square ft., and the said market value was fixed based on a similar sale deed executed by HMFL in favour of the appellant's company pertaining to the land situated in Melnallathur Village and other nearby villages. Thereafter, Section 47-A(1) proceedings were also initiated, and stamp duty was fixed by the DRO, and the market value was finally arrived at Rs.240 per square meter, and the deficit was also paid, and those documents were released.

5. In respect of the scheduled property, the fourth respondent referred the scheduled property to the third respondent / DRO for determination of the guideline value of the sale, without assigning any valid reason or justification, and Rs.600 per square ft. was arrived at as the guideline value of the subject property by classifying the said land as Industrial Estate, Type III. Pursuant to the same, R4 issued notice calling upon the appellant to pay the deficit stamp duty of Rs.27,21