Circular No. 16713/E3/2025, Undervaluation Proceedings, 31 July 2025
The Tamil Nadu Registration Department issued Circular No. 16713/E3/2025 on 31 July 2025 to prescribe procedures for referring and deciding property undervaluation cases under section 47A of the Indian Stamp Act. It requires recorded reasons, notice, supporting evidence, site inspection and an opportunity for the parties to respond before the market value and stamp duty are finally determined.
What the circular governs
Circular No. 16713/E3/2025 applies when a registering officer believes that the value stated in a property document does not reflect its correct market value. It guides registering officers, District Revenue Officers (Stamps) and Special Deputy Collectors (Stamps) on referrals and valuation proceedings under section 47A of the Indian Stamp Act.
The guidance follows a Supreme Court decision which found that required referral and valuation procedures had not been followed. The circular states that a referral must not be mechanical. There must be relevant material, an objective basis and recorded reasons for believing that a property has been undervalued.
Effect on property buyers and sellers
Circular No. 16713/E3/2025 affects people who execute or receive a property document where the declared value is questioned. The key requirements are:
- If the declared value is below the legally determined guideline value, the registering officer must tell the document holder that the original document will be referred for undervaluation proceedings.
- The document holder's signature must be obtained as proof of receiving that information, and the referral must also be noted on the receipt.
- A value above the guideline value must not be recommended without proper evidence.
- Where evidence such as a sale agreement is available, the document holder must be informed and asked why that value should not be adopted.
- Complaints about value must be disclosed to the affected person with their supporting material, and an explanation must be obtained before deciding whether section 47A action is appropriate.
- A higher value referral requires approval from the District Registrar (Administration).
Valuation and hearing procedure
The District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) must send Form I within 15 days of receiving a referral. Form I must state the reason for the proposed value and be sent to both the person who executed the document and the person who received it. They must be given 21 days from receipt to provide an explanation and supporting evidence.
A site inspection date must be communicated even if no explanation is received. An approximate site sketch must be prepared and signed by the relevant document holder. After collecting available evidence, the authority must record reasons for the provisional market value and issue Form II.
No final order may be passed after Form II without calling the document holder for a personal hearing. If the person does not attend, a second opportunity must be given. A final order based on the available evidence may be passed only after the second nonappearance.
All letters must be sent by speed post. Online delivery proof from the Department of Posts must be printed and retained in the file.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can the guideline value alone be treated as the actual market price?
No. The guideline register assists with an initial assessment, but its entries do not replace the market price or prevent the authority from conducting an inquiry into the value stated in the document.
Will I be told if my registered document is referred for undervaluation?
Yes. The registering officer must inform the document holder, obtain a signature acknowledging the information and note the referral on the receipt.
How long do I have to respond to Form I?
You must be allowed 21 days from receiving Form I to explain why the recommended value should not be adopted and to provide evidence supporting the value stated in the document.
Can a final valuation order be passed without hearing me?
A final order cannot be passed after Form II without calling you for a personal hearing. If you do not attend on the stated date, the authority must provide one more opportunity before deciding the case from the available evidence.
