Circular No. 16713/E3/2025, dated 31 July 2025
The Tamil Nadu Registration Department issued Circular No. 16713/E3/2025 on 31 July 2025 to set procedures for referring suspected property undervaluation and determining market value under the Indian Stamp Act. It requires recorded reasons, notice to the parties, an opportunity to provide evidence, a site inspection and a hearing before final determination.
What it governs
Circular No. 16713/E3/2025, issued by the Tamil Nadu Registration Department on 31 July 2025, governs how registering officers refer documents for undervaluation proceedings and how the District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) determines market value. The guidance follows a Supreme Court judgment that rejected a departmental appeal because the required referral and valuation procedures had not been followed.
The guideline value is only an initial aid for checking whether the market value stated in a document appears correct. It does not replace the actual market price or prevent the valuation authority from conducting an inquiry.
Who is affected
Circular No. 16713/E3/2025 affects people presenting property documents for registration, including those who execute and receive documents. It is especially relevant where the stated value is below the published guideline value, or where evidence or a complaint suggests that the true value is higher than the stated value.
Key procedures
- When a document states a value below the guideline value, the registering officer must inform the document presenter that the original document will be referred to the District Revenue Officer (Stamps) or Special Deputy Collector (Stamps). The presenter’s signature must be obtained, and the referral must also be noted on the receipt.
- A value higher than the guideline value must not be recommended without supporting evidence. If evidence such as a sale agreement exists, the document presenter must be told and allowed to explain why that value should not be adopted.
- A higher value referral requires approval from the District Registrar (Administration).
- After receiving a referral, the District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) must send Form I within 15 days. Form I must state the reason for the proposed value and allow 21 days for a response with supporting evidence.
- The parties must be informed of the site inspection date. An approximate site sketch must be prepared and signed by the relevant document party, and other available evidence must be collected.
- Form II must communicate the provisional market value, the reasons supporting it and a date for a personal hearing. The final order must consider the party’s written and oral explanations.
- If the provisional value is accepted and the deficit stamp duty is paid, the appropriate certificate in Form III must be attached to the document.
- For audit objections, the affected person must receive the audit note and an opportunity to explain before action is taken.
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Common questions
Does a value below the guideline value automatically prove that my property document is undervalued?
No. The guideline value supports an initial referral, but it is not a substitute for market price. The valuation authority must conduct the prescribed inquiry before fixing the market value.
Will I receive notice before a higher market value is fixed?
Yes. Form I must give the reasons for the proposed value and allow 21 days for an explanation with evidence. A provisional value must later be communicated through Form II, with an opportunity for a personal hearing before the final order.
Can the registering officer recommend a value above the guideline value without evidence?
No. A higher value cannot be recommended without supporting evidence, and the referral requires approval from the District Registrar (Administration).
What happens if I accept the provisional value?
If you accept the provisional value stated in Form II and pay the deficit stamp duty, the appropriate certificate in Form III must be attached to the document.
