Official guidance, Tamil Nadu land law
Revision Petition Order No.45591/P1/2023
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued Proceedings No.45591/P1/2023 dated 25 July 2024 on a stamp duty revision petition concerning Sale Deed Document No.P.125/2023 at the Sub Registrar Office, Konnur. The authority found that the Chennai Metropolitan Co-Operative Housing Society Limited's sale of 3.40 acres to Mr. M.V. Dharmesh did not relate to the society's housing business and therefore did not qualify for stamp duty remission under G.O.Ms.No.2179, Cooperation, dated 29 June 1966.
What the proceedings cover
Proceedings No.45591/P1/2023 dated 25 July 2024 were issued by the Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, under section 56(1) of the Indian Stamp Act, 1899. They consider a revision petition against the District Registrar, Chennai North's decision demanding deficit stamp duty and a penalty for Sale Deed Document No.P.125/2023.
The sale deed, executed on 8 May 2023, conveyed 3.40 acres in Survey No.540/1, Ayanambakkam Village, from the Chennai Metropolitan Co-Operative Housing Society Limited to Mr. M.V. Dharmesh.
Financial and registration details
Proceedings No.45591/P1/2023 record the following details:
- The sale consideration stated in the document was Rs.10,73,85,556.
- The guideline market value was Rs.59,29,60,000.
- No stamp duty was borne by the deed.
- Registration fees of Rs.21,48,330 had been paid.
- The District Registrar determined deficit stamp duty of Rs.4,15,07,200 and a penalty of Rs.3,000.
The deed had been presented without stamp duty on the basis that remission under G.O.Ms.No.2179, Cooperation, dated 29 June 1966 applied. The registering officer impounded it because the officer considered the transaction ineligible for that remission.
Why remission was not accepted
Proceedings No.45591/P1/2023 identify two requirements for remission under G.O.Ms.No.2179, Cooperation, dated 29 June 1966:
- The document must be executed by or on behalf of a cooperative society, or by an officer or member of that society.
- The document must relate to the business of the society.
The authority noted that Mr. M.V. Dharmesh appeared to have been admitted as a member five days before execution, but the District Registrar's file did not clearly contain documentary proof of membership. Even if membership were proved, the authority found that selling the entire 3.40 acres, which was not a house site, could not be treated as providing housing facilities to a member or as part of the society's business.
Who may be affected
Proceedings No.45591/P1/2023 are directly relevant to the society, purchaser and sale deed involved. They may also be useful to cooperative societies and buyers assessing whether a transaction genuinely advances the society's stated housing objects, rather than relying only on the parties' membership status.
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
Does every sale by a cooperative society receive stamp duty remission?
No. Proceedings No.45591/P1/2023 state that the document must be executed by or for the cooperative society, or by its officer or member, and must also relate to the society's business.
Why was the sale of the 3.40 acres treated as outside the society's business?
The authority found that conveying the whole property, which was not a house site, could not be regarded as providing a housing facility to a member. It therefore did not fall within the society's housing objects for stamp duty remission.
Was the purchaser's cooperative society membership accepted?
The proceedings note that the purchaser appeared to have been admitted as a member on 3 May 2023, five days before the sale deed was executed. However, the District Registrar's file did not clearly show documentary proof supporting that membership.
What deficit stamp duty and penalty had the District Registrar determined?
The District Registrar determined deficit stamp duty of Rs.4,15,07,200 and a penalty of Rs.3,000 for Sale Deed Document No.P.125/2023.
