Government Of NCT Issues Circular Regarding Registration And Stamp Duty Of Undervalued Residential Property

The Government of National Capital Territory of Delhi, vide circular no. F1/998/REGN.BR/DIV.COMM./HQ /14/3325 dated 13.10.2025 ("Stamp Duty Circular")¹ , in compliance with the directions of the High Court of Delhi in Amit Gupta vs. Government of NCT Of Delhi & Others² , has issued certain directions to the sub-registrars and joint sub-registrars in relation to the steps to be followed during the registration of basements of residential properties, where the consideration mentioned in the instrument is found to be lower than the valuation as per the applicable circle-rate.

The directions as per Stamp Duty Circular are as follows:

1. Notification to parties: At the time of registration, if the consideration stated is less than the circle-rate based valuation, the parties will be sent a notification regarding the same.
2. Opportunity to amend: The parties will be given an opportunity to revise and amend the document to reflect the correct valuation and pay the deficient stamp duty.
3. Procedure under Section 47-A: If the parties fail to amend the document and not pay the deficient stamp duty, the sub-registrar or joint sub-registrar shall register the instrument with an endorsement regarding the deficiency and forward the same to the Collector of Stamps ("Collector") for determination of the correct market value and stamp duty under Section 47-A of the Indian Stamp Act, 1899 ("Indian Stamp Act").
4. Collector: The Collector shall thereafter proceed in accordance with law including the provisions of Section 27 of the Indian Stamp Act to assess the correct market value and recover any deficiency.

Footnotes

1 https://delhi.gov.in/sites/default/files/centralized-cos/circular_dated_13_10_25_0.pdf

2 Writ Petition (C) No. 3591 of 2014.

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