March 11, 2024: The Madras High Court, on March 6, 2024, directed the Tamil Nadu government to follow the market value guidelines (MVG) fixed with effect from June 9, 2017, and upheld the single judge’s order, according to media reports. The order by a division bench of Madras High Court comprising Justice S M Subramaniam and Justice K Rajasekar directed the state government to follow the MVG fixed in 2017 until the Valuation Committee revised the MVG following the due process of law and dismissed the appeal of the State Government.
The division bench confirmed an order passed by Justice P. Velumurugan on December 18, 2023. The single judge had quashed the Inspector General’s circular on the grounds of procedural infirmities.
According to a report by the Hindu, the court nullified a decision taken by the Inspector General of Registration (IGR) on March 30, 2023, to collect stamp duty and registration charges on the basis of guideline value fixed for immovable properties in 2012 without following a decision taken in 2017 to reduce those values by 33%.
The Bench held the state government could revise the guideline value of properties only on the basis of the determination of those values by a State-level valuation committee and on receipt of recommendations from sub-committees as required under Section 47AA into the Indian Stamp Act, 1899.
The court stated that no person would be entitled to a refund of stamp duty paid on the basis of the 2012 valuation for instruments registered between March 30, 2023 and March 6, 2024.
See also: Guideline Value in Tamil Nadu 2024
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