- (1.) First Writ Petition This writ petition arises out of proceedings under section 47-A of Stamps Act as added by U.P. It is directed against order dated 28.4.1999 passed by Additional Collector (F& R), Allahabad and order dated 6.8.2002 passed by Commissioner, Allahabad Division, Allahabad, dismissing the revision filed against the first order dated 28.4.1999. Proceedings were initiated in respect of sale deed dated 24.12.1996 executed by one Ashfaq Ahmad in favour of the petitioner. Through the said sale deed an area of 16 Biswa and 3 Biswancy land equivalent to 1841 square meters was transferred. The case before Additional Collector was registered as Case No. 35/97 State Vs. Sarva Hitkarini Sahkari Avas Samiti. The land sold through the sale deed in question was share of vendor in different agricultural plots. Additional Collector / First authority held that when housing society purchases a property,the purpose is to construct house, hence stamp shall be paid in accordance with the circle rate meant for abadi land. It was further held that at the time of registration of sale deed in accordance with the circle rate of the area in question, valuation of the abadi land was Rs.450/- to Rs.500/- per square meters. In the sale deed valuation of the property was shown as Rs.40000/- and stamp duty of Rs.5300/- was paid. A.D.M held that valuation @ Rs.450/- per square meters came to Rs. 828000/- and odd. Accordingly by the first order dated 28.4.1999 a deficiency to the tune of about Rs.115000/- was determined and directed to be recovered. Commissioner, Allahabad division, Allahabad through order dated 6.8.2002, dismissed the revision No. 41 of 2002 which was directed against order of ADM dated 28.4.1999, hence, this writ petition.
(2.) I have held in Ram Khelawan Vs. State 2005 (98) RD 511 that the rules framed for determining market value under the Stamp Act and circle rates circulated under said rules are relevant only for initiation of proceedings under section 47-A of Stamp Act. However, after initiation of the case the said rules become irrelevant and while deciding the case market value shall be determined on the basis of general principles for determining market value which are applicable to the land acquisition matters. Moreover, future use of the property is not decisive.
(3.) Accordingly writ petition is allowed. Impugned orders are set-aside. Matter is remanded to A.D.M (F& R) Allahabad to decide the case again. A.D.M shall determine on the basis of general principle, the market value of the land in dispute at the time of execution of sale deed. There are three standard methods of determining market value; first is use of exemplar i.e transfer deed of similar property executed around the same time when market value is to be determined; second is principle of applying multipliers i.e. determining yearly income including rent and multiplying that by suitable multiplier. In this regard normally multiplier of 10, 12 or 15 is applied; Third is determination of market value of the land and the cost of construction in case of buildings. Applying 25 years multiplier upon the rent on which property may be let out is not the correct formula for determining the market value. Normally multiplier of 10, sometimes of 12 and occasionally of 15 is applied. Adjoining lands, buildings and their use is also relevant consideration.;