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Basheer (engineer)     30 September 2019

Stamp duty notice saying i have to pay commerical duty

Hallo,

I have purchased a plot in Hyderabad in the year 2018.

The seller has two properties adjacent to each other: 1. is 675 sq yards and 2. 112 sq. yards. (He sold me 112 sq yards plot)

History of the plot

1. The plot was a notary plot before 2012

2. In the year 2012, the seller purchased the plot and registered on his name as residential property (as it has only 15 feet wide road).

3. I purchased it in 2018 with residential property stamp duty (residential market value)

Now i received a notice saying that (incorrect adoption of market value):

the letter says: As per CIGRS vide memo No. MV1/8483/2013-2 dated 10.10.2013, in case of urban vacant land where nearby house/plot number is mentioned in the boundaries, then the highest land rate of the nearby house or plot should be adopted.

The seller who sold me the property of 112 sq yards has 675 sq yards commercial property adjacent to my plot as a boundary. He has 40 feet wide road that is commercial on the front side and back side of the plot, he has 15 feet wide road.

My plot has only 15 feet wide road as an access point. the other boundaries are houses and this commercial plot.

Usually now a days during registration process, the owner has to submit the property tax to the sub registrar. He did not pay tax to his 675 sq. yards since 2012 and also for 112 sq yards.

He wants to sell this 112 sq. yards plot as it does not make it a rectangle or square to 675 sq. yards plot and also it has only 15 wide road. Sub registrar didnt want to register this property on my name as none of the tax was paid. He paid only 675 sq yards property tax but registered my plot. I asked during that time, but the sub registrar did not raise any question and registration process was finished. I also do not have much knowledge what has happend between the owner and registrar (bribe or so). 

675 sq yards was a function hall before and this 112 sq yards which is adjacent to it was used as a kitchen. it is also in the same boundary wall now. since the beginning it is not an open plot. Yes, it is true that PTI number is not there and property tax was not paid. But now sub registrar want to rectify the mistake by imposing me with commercial value, showing the letter that i mentioned above as a reference. (He should have asked the seller to pay my residential tax since 2012-2018, to update the registered document files, rather he is trying to make residential property to commericial property as the seller has given in my document files his 675 sq. yards commercial tax document).

for open plot also we need to pay tax that i know. the owner has not paid it. so i thought i will generate an new PTI number and pay the tax with penalty on the residential land. As the sub registrat has registered the plot without my tax paper, may be he wants to wash his hands by imposing me commercial value, as in records he has beside commercial tax receipt that is used to register my plot.

when i check the property market value on the official igrs website, it is showing residential value only in that area and to my house number also. just by showing this reference document, he is asking me to pay that additional amount. if i pay that then the property will become residential to commercial.

Surely it is a residential property, with history of the plot and also only 15 feet road is the access point and also it is not an open land, as it has been used as a kitchen and it still has walls on three side and in the middle, without any roof.

i would like to know my rights, possibly not to pay stamp duty and to keep my property as residential. 

i would be glad to know in advance before consulting one last time with sub registrar. He is saying that he can only help in paying the addtiional amount in 3 installments and he cannot do anything. If there is possibility that i win, then i want to proceed legally by involving my seller and sub registrar in the case, as the seller has to pay the residential property tax from 2012-2018 and sub registrar registering the plot by neglecting my property tax and helping him sell his plot with his own property tax paid from 2012-2018 (675 sq. yards).

 

thank you very much in advance.



Learning

 4 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     30 September 2019

  C & IG Circular Memo No: MV1/8483/2013-2, Dt 10-10-2013:   This cirucular relate to Para IV of the instructions issued vide Circular memo No: MV1/8483/2013 Dt: 30-7-2013- the parav IV is ""For the land in a Sub-Sy. No (not included in Form-IV) but some other Sub-Sy. No.s of the same Sy.No. fixed with specific guideline Value in Form-IV the highest value of the sub survey no.s or  value of the main Survey No. which ever is higher should be adopted"".  so the SR has issued you a notice.  if you wish to file case first you have to give reply to the Sub Registrar and the SR/DR as the case may be will give you final orders to pay the deficit stamp duty.  Then only you have to file case in a court of law.

1 Like

Basheer (engineer)     01 October 2019

Dear Sir,

Thank you very much for the reply. Today i contacted sub registrar. He is saying he got the orders from CIG and he can only give me time for some installment payments and he cannot help more than that. I am politely requesting him to find a solution for me so that the property remains residential. 

Still, is there any possibility to reply to sub registrar. If yes, could you please let me know how do i respond to the notice.

The seller is not a good person at all. He should have generated PTI number to this plot and if he had paid tax on this plot from 2012-2018, everything would have been good for the registration. I was surprised how the sub registrar has registered the land without any tax receipt on my land. He said, he has considered, as this land is beside seller (and owner for both plots is the same) land and as seller has PTI for his land, he might have asked to first pay the pending tax, then only my plot will be registered. It seemed like that.

I agree that PTI was not generated for this land. But with current registered document, i want to generate PTI and planed to pay the tax with penalty and keep the land for future. But once i pay the stamp duty, it will become commercial property and it will also be difficult to sell the plot as it has only 15 feet road and area is also a bit slum.

please let me know how to respond to this notice. I thought sub registrar has the power to send a notice to my seller to bring tax receipt for my plot. If there is no PTI, he should generate one, pay the tax with penalty and sub registrar can close the issue. Or secondly, i take responsibility to pay the tax from 2012-2019 and may be sub registrar can close the issue. Important is it was never an open land, as it was used as a kitchen with two rooms, still the walls are intact.

it would be very helpful, if you can reply me what should be my next step to sub registrar in reply.

thank you very much in advance sir.

kavksatyanarayana (subregistrar/supdt.(retired))     01 October 2019

contact local lawyer and get pprepare reply to the notice of the SR.

Basheer (engineer)     01 October 2019

ok sir, i will contact the local lawyer. If you know a friend or an expert whom you can recommend in hyderabad near hitech city. please do so.

thank you.


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