P.Mu.No. 28752/P1/2018, Final Revision Order
The Head of the Tamil Nadu Registration Department and Chief Controlling Revenue Authority issued order P.Mu.No. 28752/P1/2018 dated 1 February 2019, allowing a revision petition concerning pending document P.47/2018 at the Ambattur Sub-Registrar Office. The authority held that the sale deed qualified for stamp duty exemption and cancelled the North Chennai District Registrar's demand for deficient stamp duty of Rs.4,87,15,506 and a penalty of Rs.5,000.
What the decision covers
Order P.Mu.No. 28752/P1/2018 dated 1 February 2019 concerns a sale deed executed in favour of the Chennai Government Officials Cooperative Building Society. Seven members sold 3.99 acres to the society for Rs.69,59,35,800 through a deed dated 17 May 2018. No stamp duty was paid on the deed.
The Ambattur registration officer treated the deed as ineligible for exemption and sent it to the District Registrar. The North Chennai District Registrar then demanded deficient stamp duty of Rs.4,87,15,506 and a penalty of Rs.5,000.
Why the demand was challenged
The Chennai Government Officials Cooperative Building Society filed a revision petition under section 56(1) of the Indian Stamp Act. The society argued that it was not a cooperative society formed to construct and provide houses to members, and that the deed was exempt under Government Order No. 2179, Cooperation Department, dated 29 June 1966.
The earlier decision had treated the society as a house-building cooperative society. It found that the deed did not state, and the society had not proved, that the seven sellers had continuously been members for at least two years.
Findings and final result
The Head of the Tamil Nadu Registration Department obtained information from the Registrar of Cooperative Societies (Housing) and found that:
- The purchasing society was not formed for the purpose of constructing houses.
- All seven sellers had been members from 11 May 2018.
- Their membership began before the deed was executed on 17 May 2018.
- The two-year membership condition applied to cooperative house-building societies, not to other cooperative societies purchasing property from their members.
Based on these findings, the authority decided that the sale deed qualified for the stamp duty exemption under Government Order No. 2179, Cooperation Department, dated 29 June 1966. The revision petition was accepted, and the District Registrar's demand for deficient stamp duty and penalty was cancelled.
Who is affected
Order P.Mu.No. 28752/P1/2018 directly concerns pending document P.47/2018, the named sellers, the Chennai Government Officials Cooperative Building Society, and the North Chennai registration authorities. Its reasoning may also be relevant when deciding whether a cooperative society purchasing land from its members is a house-building society and whether a minimum membership period applies.
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 society have to pay the deficient stamp duty and penalty?
No. Order P.Mu.No. 28752/P1/2018 cancelled the demand for deficient stamp duty of Rs.4,87,15,506 and the penalty of Rs.5,000.
Why was the two-year membership condition not applied?
The authority found that the purchasing society was not a cooperative house-building society. It relied on departmental guidance stating that the two-year condition applied to cooperative house-building societies, not to other cooperative societies buying property from members.
Were the sellers members when they executed the sale deed?
Yes. The Registrar of Cooperative Societies (Housing) reported that all the sellers had been members from 11 May 2018, before the deed was executed on 17 May 2018.
Does the decision apply to every cooperative society property purchase?
The decision directly concerns pending document P.47/2018 at the Ambattur Sub-Registrar Office. It was based on the purchasing society not being formed to construct houses and on the sellers being members before execution of the deed.
