SABHAJEET YADAV,BALA KRISHNA NARAYANA,J - (1.) BY this petition, petitioner has challenged the validity of the provisions of Uttar Pradesh Stamp (Valuation of Property) Rules, 1997 on the ground that under Rule 4 (1) and (2) of the said rules, the Collector of the District has been given unguided, uncanalised and uncontrolled power to determine minimum value of land, (Circle Rates) of immoveable property within the territorial limit of the District for charging Stamp Duty upon the instrument containing the transactions of conveyance and said rate of valuation of land can be revised by him within a period of two years from the date of fixation of earlier minimum rate suo motu or an application made to him within two years without any standard or principles, as such, Rule 4 (1) and (2) of said rules suffers from vice of excessive delegation. It is stated that 1997 Rules do not provide any guiding principle or standard and/or the materials to be taken into consideration by the Authority, to whom the power has been delegated under Rule 4 of the 1997 Rules, to determine minimum value (Circle Rate) of the immovable property of the area for the purpose of charging Stamp duty. The Government also did not frame separate guidelines fixing the norms and the principles for evaluating the minimum rate/market value of the area to be determined by Authority concerned. Thus, the Authority/Collector of the District having been conferred uncanalised and unfettered power under Rule 4 to revise the Circle Rate of the area as such the rule in question is also altra vires the Parent Act.
(2.) IT is stated that earlier to the aforesaid 1997 Rules, there was another set of rules namely U.P. Stamp Rules, 1942. Chapter XV of the said Rules provided the guidelines for determining the market value of certain instrument. Under Rule 341 (e) of which it was provided that for the purposes of payment of Stamp Duty, the minimum market value of immoveable property forming the subject matter of an instrument referred to under in Clause (c) of 340(1) may be equal to the value worked out on the basis of average price per square metre prevailing in the locality on the date of instrument. Whereas under new rules 1997, no such guidelines or principles are provided for fixation of minimum rate for valuation of land, and since the earlier existing rules have been superseded and repealed by 1997 Rules, therefore, the aforesaid guiding factor existing under earlier rules has no application under the new 1997 Rules and now it is open for the Collector to fix any Circle Rate in whimsical and arbitrary manner as he likes, therefore, merely on this ground alone the provisions of 1997 Rules can be struck down by this Court. It is stated that the Circle Rates revised by the Collector, Allahabad vide impugned order dated 20/28.8.2008 are highly exorbitant and the same are not reflective of the true minimum value of the land of area, inasmuch as the rates have been enhanced 10 to 15 times based on no justifiable material or factors to be taken into consideration for determining the minimum value (Circle Rate) of the land of the area. By this petition the petitioner has also challenged the policy of grant of free hold right over Nazul Lands on various grounds mentioned in the writ petition.
(3.) WHILE demonstrating arbitrary fixation of the Circle Rates of immovable properties in urban areas of Allahabad City certain other orders containing the list of circle rates, earlier fixed by the Collector Allahabad have also been brought on record by filing supplementary affidavit in the said writ petition. It is stated that on 1.4.2006 an order fixing Circle Rates of urban area of City Allahabad was issued for a period of two years but before expiry of said period another order fixing further enhanced Circle Rates of the same urban area was issued on 11.6.2007 and thereafter on expiry of merely nine months (before expiry of even one year what to say of two years) another order dated 20/28.8.2008 enhancing the circle rates for the same urban areas has been issued again by Collector, Allahabad.;