Circular No. 48794/E3/2017, Undervalued Documents under Section 47A(1), 13 November 2017
The Office of the Inspector General of Registration, Chennai, issued Circular No. 48794/E3/2017 dated 13 November 2017, directing registration and stamp authorities not to return original documents undergoing undervaluation proceedings under Section 47A(1) of the Indian Stamp Act, 1899. The original must be retained until valuation is completed and the required stamp duty is paid, and officials who release it contrary to the instruction may face disciplinary action.
What the circular governs
Circular No. 48794/E3/2017 dated 13 November 2017, issued by the Office of the Inspector General of Registration, Chennai, concerns documents referred for undervaluation proceedings under Section 47A(1) of the Indian Stamp Act, 1899. It gives instructions on whether the original registered document may be returned while valuation and stamp duty proceedings are pending.
The circular relies on a High Court judgment dated 9 October 2017 in W.A. (MD) Nos. 1176 of 2017 and connected cases, and W.P. (MD) Nos. 20099 of 2013 and connected cases.
Who is affected
Circular No. 48794/E3/2017 affects anyone whose original document has been referred for undervaluation proceedings. This may include a buyer, seller or property owner waiting for the document to be returned after registration.
The instructions are addressed to:
- Deputy Inspectors General of Registration.
- District Registrars for administration and audit.
- Sub Registrars.
- District Revenue Officers responsible for stamps.
- Special Deputy Collectors responsible for stamps.
Key instructions
Circular No. 48794/E3/2017 gives the following directions:
- An original document under Section 47A(1) undervaluation proceedings need not be returned while those proceedings are pending.
- The original document itself must accompany the reference and be used in the valuation proceedings.
- The original must not be released until the valuation process is completed and the proper stamp duty is paid.
- Registration and revenue officers must take appropriate action in pending cases, refer to the High Court judgment and complete the cases within the applicable time limit.
- Earlier instructions circulated by email and through the circular dated 6 November 2017 must be followed.
The High Court passages quoted in the circular state that Departmental Order 726 of Part II of the Tamil Nadu Registration Manual requires the registering officer's reference to the Collector to be accompanied by the original instrument. The judgment also states that there is no provision requiring release of the instrument during pending proceedings or after adjudication merely because a charge can be created.
Compliance by officials
Circular No. 48794/E3/2017 warns that an official who returns a document contrary to these instructions may face disciplinary action. It also requires the receiving officers to acknowledge receipt through the specified administrative reporting chain.
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Common questions
Will the Sub Registrar return my original document while Section 47A(1) proceedings are pending?
No. Circular No. 48794/E3/2017 directs that an original document undergoing undervaluation proceedings should not be returned while the proceedings are pending.
When can the original document be released?
The circular says the original must be retained until the valuation proceedings are completed and the proper stamp duty is paid.
Why must the authority keep the original document?
The High Court passages quoted in the circular state that the registering officer's reference to the Collector must be accompanied by the original instrument. The original is therefore required for the valuation proceedings.
What happens if an official releases the document against these instructions?
Circular No. 48794/E3/2017 warns that disciplinary action may be taken against the officials concerned.
