Shahberi land case: Allahabad high court directs state government to refund stamp duty paid by developer

After the quashing of land acquisition of Shahberi and the adjoining villages, the Allahabad high court has now directed the state government to refund the stamp

After the quashing of land acquisition of Shahberi and the adjoining villages, the Allahabad high court has now directed the state government to refund the stamp duty money paid by the builder, instead of asking it to approach the Greater Noida Industrial Development Authority (GNIDA) for the same. Earlier, although the state government had accepted the request to refund stamp duty, it had directed the builder to approach GNIDA for the refund. The high court has directed the state government to reconsider its order as the stamp duty money was deposited in the government’s account and not that of the authority.

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The petitioner, SJP Infracon Limited, was allotted a plot in Sector 16B in Greater Noida West, measuring 1.98 lakh square metres. A registered lease deed was executed and the stamp duty amounting to ₹12.70 crore was paid on the registration of the lease deed.

On May 12, 2011, the Allahabad high court quashed the land acquisition proceedings with respect to village Shahberi and other adjoining areas.The petitioner relinquished that portion of plot, which stood reverted to the tenure holders.

Thereafter the petitioner requested the authorities to return such stamp duty, which was paid by it for the execution of lease of the land.

On February 28, 2019, state government accepted petitioner’s claim for a refund of stamp duty after a deduction of 10%. On May 28, 201, the petitioner was directed to approach GNIDA for a refund of the amount.

The counsel for the petitioner stated the stamp duty was paid to the state government and, once the authorities have accepted the petitioner’s claim for a refund under the Indian Stamp Act, the consequential action of the refund of the stamp duty would be warranted at the level of the state government and not at the level of the Greater Noida Authority.

The high court observed that the amount received against stamp duty has been credited to the account of state and the claim for a refund of the same would, therefore, be required to be addressed by the state and not by the development authority. The order of the state government directing the petitioner to approach Greater Noida Development Authority is prima facie not found to be in accordance with law.

“The Allahabad High Court bench comprising justice Ashwani Kumar Mishra has directed the principal secretary of the stamps and registration department concerned to revisit the issue in light of the above observation and to file his personal affidavit justifying his order. The order was passed a fortnight ago,” advocate for the petitioner RA Aggarwal said on Thursday.

Dr SK Tripathi, assistant inspector general (stamps),said, “The order of the high court order will be implemented, and a decision will be taken at the state level.” He admitted that amount is paid in state government’s account. He also said as per registration act, stamp duty once paid cannot be refunded. The state government can take a policy decision for refund on an individual case-to-case basis. The state government has to decide from where refund amount has to be given.

Greater Nodia authority official, on condition of anonymity, said that the stamp duty amount was deposited to the state government’s account and authority has no role in this matter.