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"What is the market value of the property on the date the property was registered, on the basis of which the petitioner is liable to pay stamp duty" ?

Section 45-A(1) provides: if the market value of the property which is the subject matter of an instrument, in this case the sale W.A. No. 5773/2011 (GM-ST/RN) deed, has not been truly set forth, the Registering Authority after arriving at the estimated market value, communicate the same to the parties and unless the parties pay the duty on the basis of such valuation, shall keep pending the process of registration and refer the matter along with a copy of such instrument to the Deputy Commissioner for determination of the market value of the property and the proper duty payable thereon. On receipt of the reference in the aforesaid manner, the Deputy Commissioner shall after giving the parties reasonable opportunity of being heard and after holding an enquiry determine by order the market value of the property which is the subject matter of instrument. The difference if any, in the amount of duty shall be payable by the person liable to pay the duty. Therefore, it is clear, the stamp duty is payable on the market value and not on the estimated market value. The estimated market value is helpful to find out whether the instrument has been under valued but the stamp duty under law is payable only on the market value. The value of the property mentioned in the instrument is Rs.24.30 lakhs. If it is calculated on the basis of Rs.260/- per sq. ft., that is the fair market value. If it is calculated on the basis of Rs.2,000/- per sq. ft., W.A. No. 5773/2011 (GM-ST/RN) it is under valued. The notification issued by the Government setting out to Rs.2,000/- per sq. ft., as the market value of the property is only an estimated market value. If the property is registered for a value less than the estimated market value the law enjoins on the Sub-Registrar to impound the document, calculate the deficiency in the stamp duty and then refer the matter to the Deputy Commissioner for determination of the correct market value. No doubt, on 20.01.1997 the value of the property was shown as Rs.2,000/- per sq. ft. in the notification issued. The value mentioned in the sale deed was based on Rs.260/- per sq. ft. Therefore, it was under value. The Sub-Registrar was justified in calculating the market value on the basis of the notification dated 20.01.1997 and referring the matter to the Deputy Commissioner. But when the matter was before the Deputy Commissioner, one more notification dated 05.12.1998 reducing the market value from Rs.2,000/- per sq. ft., to Rs.893/- per sq. ft was issued. The said notification is undoubtedly subsequent to the sale deed. The Deputy Commissioner is expected to find out what is the market value prevailing on the date of registration of the sale deed. Thus, the estimated value mentioned in the notification is W.A. No. 5773/2011 (GM-ST/RN) only a guiding factor. The property in Geddalahalli grama tana was valued at Rs.260/- per sq. ft., whereas in the layout formed in the same village, the property valued at Rs.2,000/- per sq. ft. There was a public agitation opposing the same. Therefore, keeping in mind the market value prevailing in the locality, by a notification dated 05.12.1998 it was reduced to Rs.893/- per sq. ft. Therefore, the market value on the date of registration probably was Rs.893/- per sq. ft. and not Rs.2,000/- per sq. ft. mentioned in the notification dated 20.01.1997. These aspects have been completely ignored by the Deputy Commissioner as well as the learned Single Judge. In that view of the matter, both the orders requires to be set aside. Hence, we allow the writ appeal and the impugned orders are set aside. The market value is to be determined at the rate of Rs.893/- per sq. ft. The Deputy Commissioner shall re-calculate the market value of the property at the rate of Rs.893/- per sq. ft. and issue demand notice for payment. On such demand being complied with to complete the registration formalities.