Circular No. 26000/N1/2018, 18 June 2018
The Inspector General of Registration, Registration Department, issued Circular No. 26000/N1/2018 dated 18 June 2018 to regulate referrals for undervaluation proceedings under Section 47A of the Indian Stamp Act, 1899. It requires supporting evidence and prior approval from the District Registrar (Administration) before a registration officer may recommend a property value above the market value guideline.
What the circular governs
Circular No. 26000/N1/2018 of the Registration Department governs how registration officers refer registered documents for determination of market value under Section 47A of the Indian Stamp Act, 1899. Such referrals are sent to the District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) when the value stated in a document is considered not to reflect the proper market value.
The circular explains that market value guidelines have legal recognition and are maintained through the valuation framework headed by the Inspector General of Registration. The guideline values introduced from 1 April 2012 had been reduced by 33 per cent from 9 June 2017.
Instructions to registration officers
Circular No. 26000/N1/2018 gives the following directions:
- If a document is registered below the market value guideline, the Section 47A referral must propose the guideline value.
- A value above the guideline may be proposed only when there is proper supporting evidence.
- Before making an above-guideline referral, the registration officer must obtain approval from the District Registrar (Administration).
- The proposal seeking approval must state the reasons for the higher value, attach supporting documents and contain all details required by the circular's annexure.
- If no value is available in the market value guideline register, the value must be determined under the circulars already in force and referred under Section 47A(1).
Approval and referral process
Circular No. 26000/N1/2018 requires the registration officer to send an above-guideline proposal to the District Registrar (Administration) for approval within one week. The District Registrar must decide within one week what value should be proposed under Section 47A(1), so that the document can be referred within the applicable 15-day period.
The District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) must confirm that District Registrar approval exists before proceeding with an above-guideline valuation. If approval is missing, the proposal must be returned to the Sub-Registrar to obtain it.
Why it matters to property owners
Circular No. 26000/N1/2018 aims to prevent unsupported higher valuations that can lead to appeals, court cases and delays in returning registered documents. Its annexure requires information including the document and guideline values, recommended value, reasons, evidence, sale statistics, stamp duty paid and proposed differential stamp duty.
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
Can a Sub-Registrar recommend a value higher than the guideline value?
Yes, but only where proper evidence supports the higher value and the District Registrar (Administration) has approved the proposal. The reasons and supporting documents must be included.
What happens if my document value is below the guideline value?
The registration officer must send the Section 47A referral proposing the market value guideline value.
What if the guideline register has no value for the property category?
The registration officer must determine the appropriate value under the circulars already in force and send a referral under Section 47A(1).
Can stamp authorities act on an above-guideline proposal without District Registrar approval?
No. The District Revenue Officer (Stamps) or Special Deputy Collector (Stamps) must return the proposal to the Sub-Registrar to obtain approval from the District Registrar.
