No need to suspect TNPHC for undervaluation of propoerty

The Madras High Court bench here has observed that when the public sector Tamil Nadu Police Housing Corporation was selling flats to Policemen, then the Registration Department should not suspect that the property had been undervalued.
Dismissing a bathch of writ petitions filed by the Registration Department alleging evasion of stamp duty Justices Nooty Ramamanohana Rao and S S Sundar said the PSU would never resort to suppressing the true market value of immovable properties.
The appeals had been filed against a similar order passed by a single judge of the High Court in 2008.
Challenging the single judge's order the appellants claimed that it would lead to loss of revenue to the state in the form of deficit in collection of stamp duty.

The Judges said that the considerations payable by the policemen had been mentioned in the conveyance deeds and such an amount had also been received by the TNPHC.
There was no room for one to suspect any possible evasion of state's revenue by deliberate indulgence in under-valuation.
The judges said that it was "totally unwarranted" on the part of Registration Department to initiate proceedings under Indian Stamp Act, 1899 on charges of undervaluing the property.