Srinagar, May 24: The High Court has listed the petition seeking quashment of the state government order of determination of market value of property in urban and rural areas in Kashmir for final hearing in this week.

 The court of Justice, Mansoor Ahmad Mir listed the petition, challenging the methodology adopted by revenue authorities in determining market value of the property, for final hearing in this week.

 On December 12, 2010, the Divisional Commissioner, Kashmir issued a notification for determination of market value of property. “In pursuance of sub-rule (3) of rule (4) of Jammu and Kashmir Stamps Rules, 2006, the market rates of land in urban and rural areas of Kashmir division are notified on the basis of market rates communicated by the concerned Deputy Commissioners,” the notification reads.

 It further reads that these rates shall come into force with effect from January 1, 2011 and shall remain valid for the calendar year 2011.

 Earlier, the seller and buyer of the immovable property would themselves fix the value of the property as per their negotiations. The state government would charge stamp duty on the negotiated price at 21 per cent of the settled value. However, the state government changed the law and amendment was carried out in Stamp Act and Registration Act.

 Consequently, the market value of any immoveable property would be fixed by an authority prescribed by government under rules. Accordingly, all the Collectors (Deputy Commissioners) conducted survey in their respective jurisdictions to determine the market value of the properties and conveyed the same to Divisional Commissioner, Kashmir.

 The Divisional Commissioner notified the market value of agriculture, residential and commercial land.

 Any property, which is subject matter of sale, can be transferred as per the rate mentioned in the notification issued by Divisional Commissioner.

The effect of the amendments in law was that the buyer and the seller could now no longer themselves fix the value of the property, which is subject matter of sale. The law also provides that the stamp duty chargeable would be 10 per cent in urban areas and 7 per cent in rural areas.

 The Valley Real Estate Dealers (VRED) president Zahoor Ahmad Kurpal filed a writ petition through senior counsel Zaffar Ahmad Shah to challenge the amendments carried out in the law and the methodology adopted by revenue authorities in determining market value of the property.

 However, the Finance Secretary filed an affidavit during the legal proceedings of the petition before HC and stated that the Stamp duty chargeable in urban areas was reduced to 7 percent and in rural areas to 5 percent.

 Before the issuance of the order, the VRED said sellers and purchasers would determine the sale price of the immovable property with their mutual consent and the purchaser was to bear the charges of the stamp duty, registration fee and other legal charges as would be chargeable on the consideration amount.

 They said this position had been completely altered by the impugned legislation.  “The market value of the immoveable property will be now determined by the authorities and that a buyer was to bare the cost of the stamp duty in accordance with the market value so fixed by the notified authority and the consideration amount also was required to be fixed in accordance with the market value so notified,” the petitioner said.

 The case will come up for final hearing in this week.

Lastupdate on : Tue, 24 May 2011 21:30:00 Makkah time
Lastupdate on : Tue, 24 May 2011 18:30:00 GMT
Lastupdate on : Wed, 25 May 2011 00:00:00 IST