HC stays GO 84 regularising sale transactions through unregistered documents

Hyderabad: The Telangana High Court’s division bench, comprising Chief Justice Alok Aradhe and Justice N V Sravan Kumar on Monday stayed GO 84 dated July 26. It said “ prima facie GO is beyond the scope of Section 9 of the Indian Stamps Act, 1899. Hence, stayed.

The State Chief Secretary had issued the GO regularising sale transactions executed and concluded only by way of unregistered documents with attestation of notary in respect of non-agricultural urban properties in the State. They include properties listed as Prohibited Properties under Section 22A of the Registration Act, 1908. This action by the State has the drastic effect of overriding the statutory provisions, including Transfer of Property Act.

The counsel for petitioner, informed the court that the relaxation paves way for unscrupulous individuals, who obtained the properties through unlawful means and will definitely hit the innocent parties, who had purchased lands by investing their hard earned money.

The GO grants full exemption from stamp duty and penalty on all properties constructed within 125 square yards or below, thereby depriving the State exchequer of the required revenue.

The counsel said the Act, Registration Act1908 and the Indian Stamp Act 1999 clearly establishes that a transfer of immovable property by way of sale can only be made by way of a sale deed or deed of conveyance, which is duly stamped and registered within a period of four plus four months, only from the date of execution. But the GO has come up with regularising sale transactions executed by way of unregistered documents is in sheer violation of the Central Legislations cited.

The GO effectively overrides the provisions of the Central Acts and it exceeds the authority delegated to the State government.

The bench was adjudicating the PIL filed by the Bhagyanagar Citizens’ Welfare Association, Bharathnagar, seeking a direction to set aside GO 84.