Madurai, Jul 4: The Madurai Bench of the Madras High Court has ruled that stamp duty for properties purchased in auctions should be paid as per the market value though the auction amount might be less than it.
The court was disposing a petition by one Muthumani, who purchased a land from the Tamilnadu Industrial Investment Corporation (TIIC), seeking to quash the order of the Registrar Ggeneral that the amount of Sale of Properties through auction by TIIC, could not be taken into consideration for the purpose of correct valuation of the property and the registering authority should refer it for proper valuation.
Justice P.Jothimani said auction sale was different from sale made by the housing board for land or houses. He said the Housing board or Chennai Metropolitan Development authority fixed the value of the property taking into consideration the guideline value and there was no possibility for concealment.
But in the case of auction by the TIIC, it was not as if it allotted the plot. It auctioned the plot in respect of some amount due to it from the person who availed the loan.
It cannot be said to be the consideration fixed by the governmental agency and it only depended on the person who participated in the auction.
Published: Friday, July 04, 2008