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I have purchased a house in January 2003.The sub-registrar of Basavanagudi, where the sale deed was registered, did not agree for the stamp duty paid on the sale deed and served us a notice to pay additional stamp duty of Rs. 6,575/- which was also paid and the sale deed was registered. The registered sale deed is with me. I am in possession of the house. But recently I have received a notice from the Department of under valuation stating that the property is undervalued and to pay additional stamp duty of as Rs. 4,255. As I have paid the stamp duty as demanded by the sub-registrar why this notice? Can I ignore the notice?  Please advice.

- by Santhosh, Chamrajpet

It is wrong to ignore any notice issued by government departments, courts, and advocates. The notices have to be replied and complied with, stating the actual position. This is in general. 

With regard to your specific query, about the receipt of notice from under valuation dept, The Karnataka Stamp Act 1957, under section 45-A has given powers to the Deputy Commissioners to re-examine the documents such as registered sale deeds to detect cases of under valuation. He may also issue a notice to the parties to pay the deficit stamp duty. However, this action has to be done within two years from the date of registration. Though you have paid stamp duty as determined by the sub-registrar, the Deputy Commissioner is empowered to re-examine the issue. If you think that the property is not undervalued and correct stamp duty is paid, you may contest through an advocate with supportive documents. If not you may pay the stamp duty as demanded. The department will give an endorsement for having paid the deficit stamp duty.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.