Quick Summary: Shweta Aditya Malhotra contested a large stamp duty charged on a property she bought at an auction. The court agreed with her, deciding that the duty should be based on the auction price, not a separate market valuation.
In a legal fight that started on December 3, 2025, Shweta Aditya Malhotra challenged a decision by the Collector of Stamps, Andheri Division, Mumbai. The decision, dated May 29, 2025, set the stamp duty based on a market value of ₹8,34,91,500 instead of the auction price of ₹2,01,31,000.
The property, located on Sherly Rajan Road, Bandra West, Mumbai, was auctioned on October 29, 2021. Shweta was the highest bidder, and the sale was confirmed on December 24, 2021. She later requested that the stamp duty be calculated based on her winning bid.
Initially, on March 5, 2025, the Collector decided the duty based on a different market valuation, resulting in a duty and penalty totaling ₹62,11,768. Shweta argued this was wrong and unfair since the auction price should represent the market value.
Shweta's lawyer, Mr. Saurish Shetye, argued that auction sales should determine stamp duty, pointing to past cases where courts supported this idea. He stressed that the auction was open and monitored by the court, ensuring a fair market value.
The Collector's representative, Ms. Aloka Nadkarni, argued that the auction did not meet the standards outlined in the Maharashtra Stamp Act and related rules. They maintained that the duty should match a broader market valuation to avoid losing revenue.
Justice N. J. Jamadar, giving the judgment on January 28, 2026, agreed with Shweta. He pointed out that auction sales, especially those monitored by courts, naturally reflect true market value. The judgment canceled the Collector’s order and instructed that the stamp duty be recalculated based on the auction price.
