The liability to pay stamp duty lies with the purchaser, and sellers cannot be held criminally liable for evasion unless mens rea is established.

This petition under Article 226 of Constitution of India has been filed seeking following relief(s):-

(i) That, this Hon'ble Court may kindly be pleased to quash F.I.R. dated 26/09/2022 (Annexure P-1) bearing Crime No.88/2022 registered at respondent no.3 Police Station.

(ii) That this Hon'ble Court may kindly be pleased to call for the records of the case, for kind perusal of Hon'ble Court.

(iii) Any other relief/reliefs, order/orders, direction/directions which this Hon'ble Court may deem fit and proper may kindly be granted to the petitioner.

2. It is the case of petitioners that petitioners have inherited 1436.43

sq.mtr. of land forming part of khasra No.155/1/1 situated in Civil Lines, Ward No.7, Damoh. Petitioners sold the said property to one Rajendra Singh Bagga vide three different registered sale-deeds dated 22/10/2019, 04/10/2019 and 12/09/2019. A revenue case with regard to deficit stamp duty was registered by the Collector of Stamps as case 3 W.P. No.23745/2022 No.64/B-103/2019-20 under Section 48(b) of Stamp Act. The Collector of Stamps, Damoh after taking into consideration the entire case in hand, came to a conclusion that there is a deficit stamp duty amounting to Rs.76,21,259/- and accordingly, it was directed that it shall be paid by purchaser Rajendra Singh Bagga.

3. It is submitted that since deficit stamp duty was to be deposited by Rajendra Singh Bagga, who was the purchaser, therefore no criminal act was committed by the petitioners, who were the sellers. On 16/12/2021, Nazul Officer, Damoh also issued a No Objection Certificate to the purchaser Shri Rajendra Singh Bagga with respect to part of Plot No.155/1/1 admeasuring 1600 sq.ft. for raising construction over the same.

4. It is the case of petitioners that as per the revenue record, land which was sold by petitioners by the disputed sale-deed was a residential land and no orders were ever passed by the revenue authorities to divert the land from residential to commercial use.

5. It is submitted that surprisingly, EOW on its own registered the FIR in Crime No.88/2022 for offence under Sections 420 and 120-B of IPC. The allegations levelled in the FIR are to the effect that petitioner No.2 is involved in the act of grabbing and selling the lands owned by Christian Missionary and the modus operandi adopted by the petitioners is that by misrepresenting the lands which are of commercial usage to be the lands under residential usage, huge losses are being caused to the Government by evading stamp duty. It was further alleged that in the year 2019, petitioners in connivance with each other had sold a piece of commercial land vide registered sale-deed dated 12/09/2019 by showing 4 W.P. No.23745/2022 it to be a residential land and the registry of the same was done by reflecting the land under residential usage thereby evading stamp duty and causing loss to the Government. The Collector, Stamps by order dated 11/02/2020 passed in case No.64/B-103/2019-2020 under Section 48(b) of the Indian Stamp Act has imposed a penalty of Rs.76,21,259/- on the purchaser.

6. Challenging the FIR, it is submitted by counsel for petitioners that undisputedly the land in dispute is recorded as residential land in the revenue records and three sale-deeds were executed. Since some part of the land was situated by the side of main road, therefore two sale-deeds were executed by treating the said land as commercial land, whereas the land in question which was the subject matter of sale-deed dated 12/09/2019 was situated behind the land which was subject matter of other two sale-deeds and was 100 meters away from the main road, therefore third sale-deed dated 12/09/2019 was executed by projecting the land to be a residential land. It is submitted by counsel for petitioners that as per the provisions of Section 29 of Indian Stamp Act , the burden to pay the stamp duty is on the purchaser and therefore, petitioners cannot be made vicariously liable for evading the stamp duty.

It is the