R.1 Short title and commencement.--

       (1) These rules may be called the Delhi Stamp (prevention of Under-valuation of Instruments) Rules, 2007.
       (2) They shall come into force with effect from the date of their publication in the Delhi Gazette.

R.2 Definitions.--

       In these rules, unless the context otherwise requires,
       (a) "Act" means the Indian Stamp Act, 1899 (2 of 1899);
       (b) "Ad-valorem duty" means stamp duty according to the value of the subject matter of the particular instruments or writings;
       (c) "authorized agent" means a person duly authorized by written authority under the hand of his principal to act on his behalf;
       (d) "Collector" means the Collector as defined in the Indian Stamp Act, 1899 (2 of 1899);
       (e) "Deputy Commissioner" means the Deputy Commissioner as defined in the Delhi Land Revenue Act. 1954 (Delhi Act No. 12 of 1954);
       (f) "Form" means a form appended to these rules;
     

R.3 Facts to be set forth in an instrument--

       In the case of an instrument relating to immovable property chargeable with an ad-valorem duty, the following particulars shall also be fully and truly stated in the instrument in addition to the market value of the property, namely:
       (A) In the case of agricultural land:
       (1) Revenue estate, Khasra number and area.
       (2) Minimum price notified by the Government for valuation.
       (3) Land use.
       (B) In the case of non-agricultural land:
       (1) Area of land in square metres.
       (2) Minimum price fixed by the Government, if any.
       (3) Land use.
       (C

R.4 Notification of minimum rates for valuation of land by the Government.--

       (1) (a) The Government may, from time to time, notify the minimum rates for valuation of land through a notification in the Official Gazette, for various districts/areas forming part of the district, on recommendation of Deputy Commissioner concerned or otherwise which shall be effective from the date of the publication of the notification in the Official Gazette or as specified in the notification.
       (b) Before notifying these rates, the Government may, at its discretion, place these rates in the public domain for a period of fifteen days for inviting objections/ suggestions thereon, and take a decision on the objections/suggestions so received.
       (c) Any instrument setting forth the market value of the land described in such instrument below such valuation shall be referred by the Registering Officer to the Collector as provided herein

R.5 Statement of market value to be furnished to the Registering Officer.--

       (1) The party presenting an instrument relating to immovable property chargeable with an ad-valorem duty shall submit along with the instrument a statement in duplicate in Form-A.
       (2) The Registering Officer may call for any additional information from the concerned parties or call for and examine any record maintained by a public officer or authority.
       (3) The Registering Officer shall forward one copy of the statement in Form-A received by him under sub-rule (1) to the concerned Collector, whenever the reference is made to the Collector under Section 47A.
       Explanation I.--If an instrument relates to different kinds of properties, the information asked for in respect of each such property shall be specified separately.
       Explanation II.--If an instrume

Legal Commentary: Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007 — Rule 5

Introduction

Rule 5 of the Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007, prescribes the procedure and requirements for the party presenting an instrument relating to immovable property to furnish a statement of market value to the Registering Officer at the time of registration. This rule operationalizes the mandate of Section 47-A of the Indian Stamp Act, 1899, as amended for Delhi, by ensuring that the value of consideration set forth in the instrument is accurately disclosed and can be scrutinized by the registering authority. The rule is central to the anti-undervaluation framework, serving as the first checkpoint in detecting discrepancies between the stated consideration and the circle rates/guideline values.

What Does Section 5 Say?

Rule 5 mandates that every party presenting an instrument relating to immovable property chargeable with an ad-valorem duty shall, along with the instrument, submit a statement in the prescribed form (Form-A) containing details of the market value of the property, the consideration stated in the instrument, and other prescribed particulars. The rule requires disclosure of both the plinth area and built-up area, and makes it obligatory on the presenting party to ensure that the instrument clearly specifies all material facts affecting the valuation and stamp duty. Non-compliance or furnishing of incorrect information may render the registration process defective and attract proceedings under Section 47-A for determination of true market value and recovery of deficient stamp duty.

Essential Ingredients

• Mandatory Furnishing of Statement: The party presenting the instrument must submit a statement in Form-A along with the instrument.
• Details Required: The statement must contain the market value of the property, consideration set forth, plinth area, built-up area, and other particulars as prescribed.
• Accuracy and Truthfulness: The value and facts stated must be true and correct; misrepresentation or omission attracts liability under the Stamp Act.
• Ad-Valorem Duty Context: The rule applies to instruments chargeable with ad-valorem stamp duty, i.e., where duty is computed as a percentage of the value of consideration.
• Linkage to Circle Rates: The statement enables the Registering Officer to compare the stated value with the notified circle rates/guideline values under Rule 4.
• Consequence of Non-Compliance: Failure to comply or furnishing false values may lead to reference to the Collector under Section 47-A for determination of true market value and assessment of deficient stamp duty.

Scope of Section 5

Rule 5 applies to all instruments relating to immovable property (land, buildings, flats, agricultural land, commercial property, etc.) presented for registration in Delhi where ad-valorem stamp duty is chargeable. It covers:

• Sale deeds, gift deeds, exchange deeds, partition deeds, settlement deeds, and conveyance instruments.
• Instruments relating to both agricultural and non-agricultural land.
• Instruments where the consideration is below the circle rate, triggering the anti-undervaluation mechanism.
• Instruments presented to Sub-Registrars/Registrars under the Registration Act, 1908, in Delhi.

The rule does not apply to instruments exempt from ad-valorem duty or those where stamp duty is payable at a fixed rate irrespective of value.

Punishment for Section 5

While Rule 5 itself does not directly prescribe punishment, non-compliance or furnishing false/misleading information in the statement under Rule 5 may lead to:

• Reference to Collector under Section 47-A: The Registering Officer may refer the instrument to the Collector for determination of true market value if the stated value appears below circle rates or is suspect.
• Recovery of Deficient Stamp Duty: Under Section 47-A(2), the Collector may determine the market value and assess the proper duty payable, and the difference (deficit stamp duty) becomes recoverable from the person liable.
• Interest and Penalties: Deficient stamp duty is typically recoverable with interest, and in cases of willful undervaluation, penalties may also apply.
• Prosecution: In extreme cases of fraud or willful misrepresentation, proceedings may be initiated under relevant provisions of the Indian Stamp Act.

Punishment for deliberate undervaluation or furnishing false statements may also attract liability under Section 47-A read with the general provisions of the Stamp Act, including potential imprisonment and fine as provided under the Act.

Legal Comments

• "Rule 5 — Statement of Market Value" - Rule 5 mandates that the party presenting an instrument relating to immovable property chargeable with ad-valorem duty must furnish a statement in Form-A along with the instrument, disclosing the market value, consideration, plinth area, and built-up area. [Source: - Delhi Stamp Rules, Rule 5 text]

• "Form-A Requirement" - The statement must be in the prescribed Form-A, which is designed to capture all material particulars of the transaction, ensuring transparency and enabling comparison with circle rates. [Source: - Section 5 of Delhi Stamp Rules]

• "Linkage to Section 47-A" - Rule 5 works in tandem with Section 47-A of the Indian Stamp Act; the statement furnished under Rule 5 provides the primary data for the Registering Officer to determine whether the instrument is undervalued and whether a reference to the Collector is warranted. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Significance of Rule 5 in stamp duty determination]

• "Circle Rates as Guide" - The circle rates notified under Rule 4 of the Delhi Stamp Rules serve as the benchmark against which the values stated in Rule 5 are compared; a significant discrepancy triggers the anti-undervaluation mechanism. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Role of circle rates as indicator for proper stamp duty]

• "Two Methods of Valuation" - The Chief Controlling Authority recognized two methods for valuation of built-up property under Rule 4: (i) cost of land plus construction value, and (ii) built-up area multiplied by minimum rates for built-up flats; the higher of the two must be adopted. [Source: SAJI VARGHESE VS GOVT. OF NCT OF DELHI - 2018 0 Supreme(Del) 818 - Valuation methods under Delhi Stamp Rules]

• "Registering Officer's Discretion" - The Registering Officer does not have unfettered discretion to register an instrument with a valuation below circle rates; once circle rates are notified, the Registering Officer must refer the instrument to the Collector if the stated value is below the rate. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Registering Officer's lack of discretion to override circle rates]

• "Collector's Adjudicatory Role" - Under Section 47-A, the Collector is the designated adjudicating authority for determining the true market value; the Registering Officer's role is limited to forming a prima facie opinion based on the Rule 5 statement and circle rates. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Collector as adjudicating authority under Section 47-A]

• "Procedure on Reference" - When the Registering Officer refers an instrument to the Collector under Section 47-A, the Collector must give the parties a reasonable opportunity of being heard and must follow the procedure prescribed in Rule 7 of the Delhi Stamp Rules. [Source: MANU NARANG VS LT. GOVERNOR, GOVERNMENT NATIONAL CAPITAL TERRITORY OF DELHI - 2015 0 Supreme(Del) 3108 - Procedure for determination of property value under Section 47-A]

• "Basement Valuation" - For basements of residential properties, the Registering Officer must follow the procedure under Section 47-A when the consideration is less than the circle rate; the parties must be given an opportunity to amend the instrument or pay the deficiency. [Source: Manu Narang VS Lt. Governor, Government National Capital Territory of Delhi - Current Civil Cases (2015) - Procedure for basement registration under S. 47-A]

• "Notice to Parties" - The parties presenting the instrument must be notified that the consideration and stamp duty computed are less than the circle rate valuation, and they must be given an opportunity to make good the deficiency. [Source: Manu Narang VS Lt. Governor, Government National Capital Territory of Delhi - Current Civil Cases (2015) - Notification requirement under Rule 4(2)(B)]

• "Collector's Power to Determine Value" - Once a reference is made under Section 47-A, the Collector has the power to determine the market value and the proper duty payable, and the parties are bound by such determination. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Collector's power under Section 47-A]

• "Guidelines Register Not Binding" - The guidelines register or circle rates are merely indicative and not binding on the Collector; the Collector must independently determine the market value based on evidence and principles laid down in Rule 5 of the respective State Stamp Rules. [Source: Sudama Devi VS State of Bihar - 1997 0 Supreme(Pat) 63 - Guidelines register not binding on Collector]

• "Validity of Rules" - The Delhi Stamp (Prevention of Under-Valuation of Instruments) Rules, 2007, including Rule 5, have been upheld as constitutional and valid by the Delhi High Court in multiple judgments. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Validity of Delhi Stamp Rules upheld]

• "Anti-Undervaluation Objective" - The primary objective of Rule 5 and the broader framework of the Delhi Stamp Rules is to prevent undervaluation of instruments, ensure proper collection of stamp duty, and curb the use of unaccounted money in property transactions. [Source: AMIT GUPTA VS GOVT. OF NCT OF DELHI - 2016 0 Supreme(Del) 1720 - Objective of circle rates and anti-undervaluation rules]

• "Appeal Against Collector's Order" - Any person aggrieved by the Collector's order under Section 47-A(2) or (3) has the right to appeal to the District Judge within the prescribed period. [Source: Chandrakant C. Adesara VS State Of Bihar - 1997 0 Supreme(Pat) 237 - Limitation and appeal provisions under Section 47-A]

• "Two-Year Limitation" - The Collector's power to take action suo motu or on reference is subject to a limitation of two years from the date of registration, as held in the context of similar State Stamp Rules. [Source: Chandrakant C. Adesara VS State Of Bihar - 1997 0 Supreme(Pat) 237 - Two-year limitation for Collector's action under S. 47-A(3)]

• "Natural Justice Requirements" - The procedure under Section 47-A read with Rule 5 must comply with the principles of natural justice; notices must be served, parties given opportunity of hearing, and reasons recorded. [Source: B. RAZIA RAZAK VS DISTRICT REGISTRAR, PREVENTION OF UNDERVALUATION OF THE INSTRUMENTS, BANGALORE - 2003 0 Supreme(Kar) 456 - Principles of natural justice in stamp valuation proceedings]

• "Stamp Duty on Market Value" - Stamp duty is ultimately payable on the true market value of the property, not merely on the consideration stated in the instrument; Rule 5 is the mechanism to bring the stated value in line with the actual market value. [Source: Harjinder Pal Singh VS Collector of Stamps Sub-Divisional Magistrate, Vasant Vihar - 2018 0 Supreme(Del) 3083 - Stamp duty assessed on value of consideration as determined by Collector]

• "Judicial Review Scope" - Courts can examine whether the valuation under Rule 5 and subsequent proceedings under Section 47-A were conducted in accordance with law, including whether relevant factors were considered and procedural requirements were followed. [Source: Sanjay Kumar Saha VS State of West Bengal - 1997 0 Supreme(Cal) 293 - Judicial review of valuation orders]

R.6 Reference to Collector on instruments undervalued.--

The Registering Officer, while referring the document to the Collector under sub-section (1) of Section 47A of the Act, shall state clearly the facts and circumstances that prompted the Registering Officer to come to the belief that the property or the consideration, as the case may be, has been under valued.

R.7 Assessment of duty.--

       (1) On receipt of reference under sub-section (1) of Section 47A, the Collector shall serve on the person or persons concerned, a notice in Form-B, requiring him on a date and at a place to be specified therein, either to attend in person or through an authorized agent, to produce or to cause to be produced any evidence on which such person or persons may rely in his or their support.
       (2) The Collector, after taking such evidence as the person or persons may produce and after making such enquiry as he may deem proper including taking into account the prices determined as per rule 4, shall determine the value of property or consideration, as the case may be, and assess the amount of deficient duty recoverable from the person concerned.
       (3) If the person or persons fails or fail to attend in response to the notice served under sub-rule (1)

R.8 Recovery of duty.--

       (1) Notice in Form-C shall be issued by the Collector directing the person concerned to pay into Government Treasury the full amount of the deficient amount of duty due from him and to furnish a copy of receipted challan, showing the payment of such amount. The date for payment to be so specified in the notice shall be not less than thirty days from the date of service of such notice:
       Provided that the Collector in respect of any particular person, for reasons to be recorded in writing, may extend the date of such payment:
       Provided further that when a person has presented an appeal under sub-section (4) of Section 47A, the Collector may, in his discretion, treat such person as not being in default so long as the appeal remains pending.
       (2) A person making payment in compliance with a notice is

R.9 Maintenance of Register.--

The cases shall be entered in a register in Form -D.

R.10 Return of instrument.--

Where an instrument has been referred to the Collector under Section 47A, the Collector of Stamps shall, when he has finally dealt with it, return it to the Registering Officer concerned.

R.11 Communication of Collector's order.--

A copy of the final order passed by the Collector shall be forwarded to the Registering Officer concerned in order to enable the latter to make the necessary entry in register in Form-E to be kept in his office and to communicate the same to the person concerned.

R.12 Appeal.--

       (1) Any person aggrieved by an order of the Collector under sub-section (2) of Section 47A may, within thirty days from the date of such order, prefer an appeal to the District Judge against such order. All court fee stamps affixed to memorandum of appeal under sub-section (4) of Section 47A, shall be punched immediately in the presence of the authority concerned. The memorandum of appeal shall be signed by the appellant or his authorized agent and may be presented in person or by his authorized agent, in the appellate court.
       (2) An appeal shall not be accepted or acted upon, if sent by post.
       (3) Save as otherwise provided by any law for the time being in force, every pleading shall be verified at the foot by the party or by one of the parties pleading or by some other person who is acquainted with the facts of the case to the satisfacti

R.13 Summary rejection of appeal.--

       (1) Save as provided in rule 20, if the appeal is not preferred in time, or the memorandum is not prepared in accordance with the provisions of these rules, the appellate authority may reject the appeal summarily.
       (2) The appeal may also be summarily rejected on other grounds, which shall be recorded in writing by the appellate authority:
       Provided that before the order rejecting an appeal is passed, the appellant shall be given a reasonable opportunity of being heard.

R.14 Hearing of appeal.--

       (1) If the appeal is not summarily rejected, the appellate authority shall fix a day and place for hearing the appeal and may, from time to time, adjourn the hearing.
       (2) The appellate authority may, before disposing of any appeal, make such further enquiry as it may think fit or cause further enquiry to be made by the Collector concerned.
       (3) The appellate authority shall not enhance the assessment unless the appellant has had a reasonable opportunity of showing cause against such enhancement.
       (4) If the order on appeal is likely to affect any person other than the appellant adversely, that other person shall also be given a reasonable opportunity of being heard before passing such an order.

R.15 Hearing in the absence of parties.--

If on the date fixed for hearing or on any other date to which the hearing may be adjourned, the appellant does not appear either in person or by his authorized agent when the appeal is called on for hearing, the District Judge may dismiss the appeal or may decide it on merits.

R.16 Passing of order.--

When the hearing of an appeal is completed, the District Judge shall pass his order in writing and his order shall be final.

R.17 Order on appeal to be communicated to the officer concerned.--

A copy of the order on appeal shall be sent to the Collector whose order forms the subject matter of appeal.

R.18 Appearance through advocate or authorized agent--

In any inquiry under these rules, any of the parties to the instrument may appear in person or through an advocate or an authorized agent.

R.19 Service of notices, etc.--

       (1) All notices, orders and other documents required to be served upon in case of an individual, shall be deemed to be duly served if sent to his known address by registered post or tendered to the person or his agent. In cases, where the notice is required to be served upon a company, firm, public body, corporation or society, it shall be deemed to be duly served, if it is sent or tendered at the registered or principal office of the company, firm, public body, corporation or society, as the case may be.
       (2) If such notice cannot be served upon or is received back undelivered, it shall be affixed at a conspicuous place at the last known address of the person to whom it is concerned or at the registered/principal office of the company, firm, public body, corporation of society, as the case may be.

R.20 Condonation of delay.--

The appellate authority may entertain an appeal after the expiry of the period of appeal prescribed under rule 12 if it is satisfied that there was sufficient cause for not filing it within that period.

R.21 Deciding question relating to procedure not specifically provided by the Act or these rules.--

In deciding any question relating to procedure not specifically provided by the Act or these rules, the appellate authority shall, as far as possible, be guided by the provisions contained in the Code of Civil Procedure, 1908 and the Delhi High Court Rules as applicable.

ANNEXURE.1 ANNEXURE

       Minimum Rates (Circle Rates) for valuation of Land and Properties under Section 27 and Section 47A of the Indian Stamp Act, 1899 (2 of 1899)
       1. Minimum Land Rates for Residential Use:
       Category of the locality Minimum rate for valuation of land for residential use
       
        Rs. per sq. mtr.
       A 43000
       B 34100
       C 27300
       D 21800
       E 18400
       F 16100
       G 13700
       H
        6900