Circular No. 48794/E3/2017 on Undervalued Documents
The Office of the Inspector General of Registration, Chennai, issued Circular No. 48794/E3/2017 on 13 November 2017, directing registration and stamp authorities not to return original documents undergoing undervaluation proceedings under section 47A(1) of the Indian Stamp Act, 1899. The original must remain with the authorities until valuation is completed and the required stamp duty is paid, in line with the cited Madras High Court judgment.
What the circular governs
Circular No. 48794/E3/2017, issued by the Office of the Inspector General of Registration, Chennai, on 13 November 2017, concerns documents referred for undervaluation proceedings under section 47A(1) of the Indian Stamp Act, 1899. It gives instructions on whether the original registered instrument can be returned while valuation and stamp duty proceedings are pending.
The circular relies on a Madras High Court judgment dated 9 October 2017. The judgment states that a reference made by a registering officer to the Collector must be accompanied by the original instrument. It also states that there is no provision requiring release of the document during the proceedings or after adjudication without resolution of the duty determined.
Who is affected
Circular No. 48794/E3/2017 directly affects parties whose original property or other instruments have been referred for suspected undervaluation. It also applies to:
- Sub-Registrars.
- District Registrars responsible for administration or audit.
- Deputy Inspectors General of Registration.
- District Revenue Officers responsible for stamps.
- Special Deputy Collectors responsible for stamps.
A buyer or owner whose document is under such proceedings should expect the original to remain with the relevant authority while the value and stamp duty are being determined.
Key instructions
Circular No. 48794/E3/2017 requires registration and stamp authorities to:
- Keep the original instrument when it is under undervaluation proceedings.
- Subject the original instrument itself to the valuation process.
- Avoid releasing the original until valuation proceedings are completed and the appropriate stamp duty is paid.
- Use the cited Madras High Court judgment when dealing with related pending cases.
- Complete pending cases within the applicable time limits under the instructions already issued.
- Provide acknowledgement that the circular has been received through the specified administrative hierarchy.
The cited judgment also states that the instrument cannot be released unless the duty determined is set aside or found to be wrong.
Consequences for officials
Circular No. 48794/E3/2017 warns that disciplinary action will be taken against officials who return documents contrary to these instructions. Registration and stamp officials are therefore directed to retain originals until the required conditions for release are met.
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 I collect my original document while an undervaluation case is pending?
No. Circular No. 48794/E3/2017 directs officials not to release the original while valuation proceedings are pending.
When can the original document be released?
The circular says the original must not be released until valuation proceedings are completed and the appropriate stamp duty is paid. The cited judgment also refers to release where the duty determination is set aside or found to be wrong.
Why does the authority need to keep the original instrument?
The cited Madras High Court judgment states that a registering officer's reference to the Collector must be accompanied by the original instrument. The circular therefore requires the original itself to undergo the valuation process.
What happens if a registration official returns the document early?
Circular No. 48794/E3/2017 warns that disciplinary action will be taken against officials who return documents without following its instructions.
