Pay Stamp Duty On Current Rate, SC Tells 12,000 Flat OwnersNew Delhi, Jul 27: In a setback to about 12,000 flat owners in Noida, the Supreme Court today ordered that they should pay stamp duty on the basis of the current circle rates and not
New Delhi, Jul 27: In a setback to about 12,000 flat owners in Noida, the Supreme Court today ordered that they should pay stamp duty on the basis of the current circle rates and not on the basis of 1992 rates when the constructions were carried out.
A special bench of justices Dalveer Bhandari and H S Bedi passed the direction while dismissing applications by Army Welfare Housing Organisation and others challenging the NOIDA (New Okhla Industrial Development Authority's) decision to recover stamp duty on the basis of present market value.
According to counsel Abha Sharma appearing for several flat owners, the decision would cause a liability ranging from Rs 2 to 3 lakh stamp duty, which was the original cost of construction in 1992, on flat-owners.
The aggrieved flat owners argued the Noida authority and the state government are charging duty on the basis of valuation of the property on new circle rate that is Rs 25 thousand per square meter plus 2 lakh for covered parking.
The apex court had on September 10 given six months to members of housing societies for execution of the tripartite deeds (among authorities, societies and allottees) on the basis of normal stamp duty without charging any extra amount or penalty.
The bench had ordered that the deeds shall be executed before March 9, failing which Rs 100 penalty per day shall be imposed on each flat owner.
However, the flat owners moved fresh applications complaining that the authorities were recovering the stamp duty on the basis of the present market rates which had increased phenomenally whereas the original constructions were made in 1992. PTI