Telangana High Court Stays Operation of GO 84

HYDERABAD: The Telangana High Court on Monday stayed the state government’s decision to regularise transactions in non-agricultural urban properties effected by notarised documents.

The government issued GO 84 on July 26, 2023, for regularisation of the sale transactions executed and concluded only by way of unregistered documents with an attestation of a notary. This included properties listed as prohibited under Section 22A of the Registration Act, 1908.

The petitioner, Bhagyanagar Citizens Welfare Association, Bharathnagar, Hyderabad, had said that the relaxation provided by G0 84 would help unscrupulous individuals and could be used to cheat gullible buyers.

A division bench, comprising Justice N.V. Shravan Kumar observed that the GO was prima facie beyond the scope of Section 9 of the Indian Stamp Act, 1899, and as it directs the registration authorities to accept documents as valid link documents for further transactions.

The court said that Clause 10 of the prima facie was in contravention of the Transfer of Property Act, of 1882, the Registration Act, of 1908, and the Indian Stamp Act, of 1899.

The bench was issuing interim orders while adjudicating a PIL filed by Bhagyanagar Citizens Welfare Association, Bharathnagar, Hyderabad, which stated that the GO would “override the statutory provisions, including of the Transfer of Property Act.

Narendar Naik, counsel for the petitioner, said the relaxation would bolster the claims of unscrupulous individuals, who obtained properties through unlawful means. It will also hit gullible parties.

Counsel said the GO granted full exemption from stamp duty and penalty on all properties constructed up to an area of 125 square yards, thereby depriving the state exchequer of revenue.

Counsel informed that the Transfer of Property Act, 1882, Registration Act, 1908, and the Indian Stamp Act, 1999 establish that a transfer of immovable property by way of sale can only be made by way of a sale deed, which is duly stamped and registered within a prescribed period, from the date of execution.

GO 84 regularises sale transactions executed by way of unregistered documents.

Special government pleader Harender Pershad submitted that the state government does not seek to register any documents which are prohibited under the Registration Act, of 1908. He said that the GO had been issued with the intent to collect stamp duty on notarised documents, which is within the powers of the government under Section 9 of the Indian Stamp Act, 1899.