Quick Summary: Romell Real Estate challenged a demand for extra stamp duty on a slum redevelopment project in Malad. The court sided with Romell, canceling the demand notices.
Romell Real Estate Pvt. Ltd. made a deal for a slum redevelopment project in Malad. At first, they paid a stamp duty of ₹3.15 crores based on a 2017 assessment. However, in December 2021 and December 2023, the Collector of Stamps sent new notices asking for an extra ₹1.01 crores plus a penalty.
The argument started when the authorities changed the land's market value from ₹63 crores to ₹83.33 crores. This change happened because of an internal check, leading to demands for more stamp duty and a penalty totaling ₹2.08 crores.
"Romell Real Estate argued against this and even before the hearing was held, the Collector of Stamps sent the Demand Notice." - Court Document
Justice Somasekhar Sundaresan looked into whether the extra demands were fair. The court found that the authorities wrongly added the cost of building a Permanent Transit Camp (PTC) to the land's market value.
Guideline No. 26: The court stressed using Guideline No. 26 for slum redevelopment projects, which leaves out certain building costs from the market value.
Six-Year Rule: The court noted that the demand notices were sent after the six-year time limit, making them invalid.
"The delay in the instant case is too long." - Court Document
The court canceled the demand notices and the order, siding with Romell Real Estate. This decision shows how important it is to follow specific rules for calculating stamp duty in redevelopment projects.
