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4. I have heard Shri Ashish Aggarwal, Advocate for the petitioner and Shri Deepak Jindal, Assistant Advocate General, Haryana for the respondents and perused the paper book with their assistance.

5. The relevant provisions of Section 47-A of the Act are extracted below:

47-A. Instruments under-valued how to be dealt with-
(1) If the Registering Officer appointed under the Registration Act, 1908, while registering any instrument transferring any property has reason to believe that the value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the value or consideration, as the case may be, and the proper duty payable thereon.

A bare perusal of the language of Section 47-A of the Act, as extracted above, shows that in case the Registering Officer has reason to believe that the value of the property or consideration, as the case may be, has not been truly set forth in the instrument refer the same to the Collector for determination of correct value thereof.

6. The term 'reason to believe' forms part of many statutes wherever action is taken against a person and while explaining the same in Dr. Partap Singh v. Director of En forcement, Foreign Exchange Regulation Act . Hon'ble the Supreme Court opined as under:

Sub-section (1) of Section 47-A empowers the Registering Officer, while registering any instrument relating to the transfer of any property, if he has reasons to believe that the value of the property or consideration, as the case may be, has not been truly set forth in the instrument, after registering such instrument, to refer the same to the Collector for determination of the value of the property or the consideration, as the case may be, and the proper duty payable thereon. It would, therefore, be clear that the Registering Authority has to satisfy himself that value of the property or the consideration for it has not been truly set forth in the instrument. He may make a reference to the Collector in accordance with the provisions of Sub-section (2) of Section 47-A. Before making reference, he is required to register the document and he is not empowered to withhold the registration. Such a registration, of course will be subject to the determination of the true market value prevailing in the locality though the value mentioned in the instrument for such registration under Sub-section (1) of Section 47-A was not conclusive.
The guidelines provided by the State would only serve as prima facie material available before the Registering Authority to alert him regarding the value. It is common knowledge that the value of the property varies from place to place or even from locality to locality in the same place. No absolute higher or minimum value can be pre-determined. It would depend on prevailing prices in the locality in which the land covered by the instrument is situated. It will be only an objective satisfaction that the Authority has to reach a reasonable belief that the instrument relating to the transfer of property has not been truly set forth or valued or consideration mentioned when it is presented for registration. The ultimate decision would be with the Collector subject to the decision on an appeal before the District Court as provided under Sub-section (4) of Section 47-A. It would, thus, be seen that the aforesaid guidelines would inhibit the Registering Authority to exercise his quasi-judicial satisfaction of the true value of the property or consideration reflected in the instrument presented before him for registration. The statutory language clearly indicates that as and when such an instrument is presented for registration, the sub-Registrar is required to satisfy himself before registering the document, whether true price is reflected in the instrument as it prevails in the locality. If he is so satisfied, he registers the document. If he is not satisfied that the market value or the consideration has been truly set forth in the instrument, subject to this making reference under Sub-section (1) of Section 47-A, he registers the document. Thereafter, he should make a reference to the Collector for action under Sub-sections (2) and (3) of Section 47-A. (emphasis supplied)