Revision Order on Simple Mortgage Deed No. P.142/2020
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.20904/P1/2020-1 dated 22 August 2024, deciding Aadhar Housing Finance Limited's revision petition concerning Simple Mortgage Deed No. P.142/2020 registered at the Joint II Sub Registrar Office, Chengalpattu. The proceedings apply G.O. (Ms.) No. 60 of the Commercial Taxes and Registration Department dated 16 March 2020, set aside the District Registrar, Chengleput's earlier assessment, and direct payment of deficit stamp duty of Rs.10,00,000 and a penalty of Rs.10,000.
What the proceedings cover
D.Dis.No.20904/P1/2020-1 of the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, concerns Simple Mortgage Deed No. P.142/2020. The deed was executed on 8 May 2020 by Aadhar Housing Finance Limited in favour of Beacon Trusteeship Limited and secured Rs.300,00,00,000.
The mortgage was created to secure repayment of debentures issued by Aadhar Housing Finance Limited. Beacon Trusteeship Limited was appointed as the debenture trustee.
Why the dispute arose
The Joint II Sub Registrar Office, Chengalpattu, impounded the document because it listed existing loans sanctioned by various banks. The Sub Registrar considered that the required stamp duty and registration fees had not been paid for those loans.
The District Registrar, Chengleput, treated the document as a mortgage under Article 40(b) of the Indian Stamp Act, 1899. The District Registrar determined:
- Stamp duty already borne by the deed of Rs.40,000.
- Deficit stamp duty of Rs.3,19,60,000.
- Penalty of Rs.40,000.
Aadhar Housing Finance Limited challenged that assessment through a revision petition under section 56(1) of the Indian Stamp Act, 1899.
Findings on the listed bank loans
D.Dis.No.20904/P1/2020-1 found that the existing bank loans were listed only for the debenture trustee's knowledge. The clauses examined did not create a charge over the mortgaged property for those loans.
The proceedings found that:
- “Total Outstandings” referred to money incurred in respect of the debentures.
- The charge over the property secured those Total Outstandings.
- The mortgaged assets secured repayment of the debenture principal, premium, interest and related amounts.
- The mortgage did not secure the separate existing loans listed in the deed.
Final decision and practical effect
The Chief Controlling Revenue Authority and Inspector General of Registration applied G.O. (Ms.) No. 60 of the Commercial Taxes and Registration Department dated 16 March 2020. The proceedings state maximum stamp duty of Rs.10,00,000 and maximum registration fee of Rs.1,00,000 for the mortgage.
The District Registrar's earlier order was set aside. Aadhar Housing Finance Limited was directed to pay deficit stamp duty of Rs.10,00,000 and a penalty of Rs.10,000. The decision is specific to Document No. P.142/2020 and its treatment of the listed prior loans.
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
Did the authority uphold the District Registrar's demand for Rs.3,19,60,000?
No. D.Dis.No.20904/P1/2020-1 set aside the District Registrar's order and directed payment of deficit stamp duty of Rs.10,00,000 with a penalty of Rs.10,000.
Were the earlier bank loans treated as secured by this property?
No. The Chief Controlling Revenue Authority and Inspector General of Registration found that the earlier loans were listed for the debenture trustee's knowledge and that the deed did not create a charge over the property for those loans.
What debt did Simple Mortgage Deed No. P.142/2020 secure?
The deed secured repayment of debentures issued by Aadhar Housing Finance Limited, including the principal, premium, interest and related amounts payable under the debentures.
Does this decision change stamp duty for every mortgage in Tamil Nadu?
The proceedings decide the revision concerning Simple Mortgage Deed No. P.142/2020. The source does not state that it changes stamp duty for every mortgage.
