Official guidance, Tamil Nadu land law
D:Dis.No. 1508/P1/2022, Revision Petition on Pending Document No. 182/2021
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings D:Dis.No. 1508/P1/2022 dated 24 January 2023 to consider M/s. SEZ Recycling's revision petition against the stamp duty and penalty imposed on a deed assigning leasehold rights in a Special Economic Zone. The proceedings examine whether the assignment qualifies for stamp duty exemption, but the supplied text ends before the final decision and does not show whether the demand was confirmed or cancelled.
What the proceedings concern
Proceedings D:Dis.No. 1508/P1/2022 of the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, concern pending document No. P182/2021 at the Joint II Sub Registrar Office, Chengalpattu. The document is a Deed of Assignment executed on 26 August 2021 for property within a Special Economic Zone.
The deed assigned leasehold rights over 1.96 acres in eight survey numbers in Thenmelpakkam Village, together with buildings, for the remaining portion of a 99 year lease. Velankani Information Systems Private Limited was the assignor, M/s. SEZ Recycling was the assignee, and Mahindra World City Developers Limited joined in execution.
Stamp duty dispute
The Joint II Sub Registrar impounded the deed because the registering officer considered it ineligible for stamp duty exemption. The District Registrar, Chengalpattu, treated it as a transfer of lease and determined:
- Total consideration of Rs.5,77,50,000.
- Stamp duty already borne of Rs.100.
- Deficit stamp duty of Rs.28,87,400.
- Penalty of Rs.600.
The consideration included Rs.5,50,00,000 paid to Velankani Information Systems Private Limited and Rs.27,50,000 paid to Mahindra World City Developers Limited as transfer charges.
Grounds raised by M/s. SEZ Recycling
M/s. SEZ Recycling argued that:
- The property is within a notified Special Economic Zone.
- Exemption depends on the property's geographical location.
- The exemption is not restricted to sale deeds or to the first document relating to the property.
- The earlier lease was between the developer and a unit, while the assignment involved two units and the developer.
- The Assistant Development Commissioner had verified or approved relevant transactions.
Who may be affected
Proceedings D:Dis.No. 1508/P1/2022 directly affect the named parties and pending document No. P182/2021. They may also be relevant to professionals examining assignments of leasehold rights within Special Economic Zones, particularly where an earlier transaction received an exemption. However, the supplied text does not contain the final ruling on eligibility, and it should not be read as confirming a general exemption for later Special Economic Zone transactions.
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
Was the deed registered with full stamp duty paid?
No. The deed bore stamp duty of Rs.100. The District Registrar determined deficit stamp duty of Rs.28,87,400 and imposed a penalty of Rs.600.
Why did M/s. SEZ Recycling claim an exemption?
M/s. SEZ Recycling argued that the property was within a notified Special Economic Zone and that the transaction involved Special Economic Zone units and the developer. It also argued that the exemption was not limited to sale deeds or the first document.
Did the Chief Controlling Revenue Authority cancel the stamp duty demand?
The supplied text does not show the final decision. It ends while discussing the exemption and registration fee, so it does not establish whether the demand was cancelled or confirmed.
Does this proceeding prove that every later assignment in a Special Economic Zone is exempt?
No. The proceedings concern one specific Deed of Assignment and the supplied text contains no final ruling granting a general exemption.
