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(b) Competitive bids assure market price-Reference to Collector in such a case cannot be a mechanical act.

9. Referring to a normal situation of a price determined by competitive bids, the Hon'ble Supreme Court in V.N.Devadoss Versus Chief Revenue Control Officer-cum-Inspector-2009(7) Supreme Court Cases 438 held as under:-

"13. Sub-Sections (1) and (3) of Section 47-A clearly reveal the intention of the legislature that there must be a reason to believe that the market value of the property which is the subject-matter of the conveyance has not been truly set out in the instrument. It is not a routine procedure to be followed in respect of each and every document of conveyance presented for registration without any evidence to show lack of bona fides of the parties to the document by attempting fraudulently to undervalue the subject of conveyance with a view to evade payment of proper stamp duty and thereby cause loss to the revenue. Therefore, the basis for exercise of power under Section 47-A of the Act is willful undervaluation of the subject of transfer with fraudulent intention to evade payment of proper stamp duty.

(V.N.Devadoss's case)

c). The circle rate or the Collector's rate (determined in the State of Punjab in the manner provided under Rule 3-A of the Punjab Stamps (Dealing of Under Valued Instruments) Rules shall afford such basis. (K.S.Jhamb's case (DB); Manoj Kumar's case (SC))

d). The circle rate or the Collector's rate shall normally be with reference to the date of execution of sale and registration and not the valuation on the date of agreement or the date of allotment (State of Rajasthan's case)

e). The Registering Officer shall have no need, normally to suspect the valuation relating to the property valuation, when the State or its instrumentalities themselves have determined the market valuation or when the market valuation is best obtained through competitive bidding (V.N. Devadoss's case (SC) )

f). If the date of auction/allotment and payment of installment are distanced by a long period to the date of execution of sale or registration, the issue of the valuation for the purpose of stamps could be controlled by specific Rules and the contingencies provided under the Rules will have to be strictly applied for taking the benefit under the Rules (See Rule 3-B and the contingencies mentioned therein).