THE HONOURABLE SRI JUSTICE K.SARATH WRIT PETITION No.17037 of 2025

ORDER:

Heard learned counsel appearing for the petitioner and Assistant Government Pleader for Stamps and Registration for the respondents. With their consent, this writ petition is taken up for disposal at the stage of admission itself.

2. Learned counsel for the petitioner submits that this writ petition is filed questioning the action of the respondent No.3-Sub Registrar, Narapally, Medchal- Malkajgiri District in issuing Notice No.167/2025 dated 06.05.2025 demanding stamp duty amount of Rs.1,61,340/- in respect of Deed of Rectification dated 11.10.2024 bearing Document No.9754 of 2024 presented by the petitioner, which is registered by the respondent No.3-Sub Registrar, Narapally.

3. Learned counsel for the petitioner submits that the petitioner firm is in the business of real estate which develops the lands into residential plots and constructs residential apartments and the petitioner had entered into a Development Agreement-Cum-Irrevocable General Power of Attorney vide Document No.2665/2020 dated 18.03.2020, with one Mr. B.Sanjeeva Reddy, who is the land owner of an Agricultural Land admeasuring Ac.0.20 guntas situated in Sy.No.825/A at Korremula Village, Venkatapur Gram Panchayat, Ghatkesar Mandal, Medchal-Malkajgiri District and the same was registered in the office of the Sub- Registrar, Narapally. He further submits that in the said Development Agreement dated 18.03.2020, a typographical error has been crept, wherein it is mentioned that the land owner is entitled for 58% of the residential plots and the petitioner is entitled to retain 42% of the residential plots in the developed layout, which should actually be in the ratio of 54% : 46%. In view of the same, the petitioner as well as the land owner have executed a Deed of Rectification for correction of the percentage of share as well as inclusion of the GPA powers in Document No.9754/2024 dated

11.10.2024.

4. Learned counsel for the petitioner submits that while it being so, the respondent No.3 had issued an impugned notice No.167/2025 dated 06.05.2025, stating that during the course of the Internal Audit Report for the period July-2024 to October-2024, an amount of Rs.1,61,340/- has been detected as deficit stamp duty in respect of Document No.9754/2024 and demanded the petitioner to pay the Stamp Duty to tune of Rs.1,61,340/- and if not paid, a charge would be imposed on the subject property under Section 48 of the Indian Stamps Act.

5. Learned counsel for the petitioner further submits that the said impugned notice was issued without issuing any show cause notice to the petitioner or calling for an explanation from him, which is contrary to Section 41-A of the Indian Stamps Act and requested this Court to allow the writ petition by setting aside the impugned notice No.167/2025, dated 06.05.2025 issued by the respondent No.3.

6. On the other hand, learned Assistant Government Pleader for Stamps and Registrations basing on the written instructions submitted by the respondent No.3-Sub Registrar vide Lr.No.216/2025 dated 26.06.2025, submits that a Deed of Rectification vide Document No.9754/2024, dated 10.10.2024 was executed by the petitioner and his vendor for an alteration of the apportionment of the developing areas as 54% : 46% from 58% : 42% along with the inclusion of GPA powers/clauses which were omitted in the Development Agreement-cum-

GPA.

7. Learned Assistant Government Pleader for Stamps and Registration further submits that the correction of the ratio of the developing lands between the land owners and the petitioner is a ‘material’ alteration, which attracts the stamp duty under Section 41 of the Indian Stamps Act, 1899. In the rectification deed submitted by the petitioner and the land owner, it is clearly mentioned that the subject land is an agricultural land and is being converted into non-agricultural land in Nala proceedings No.2100013541, dated 15.01.2021, issued by the Tahsildar &