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THE KARNATAKA STAMP (PREVENTION OF UNDERVALUATION OF INSTRUMENTS)

THE KARNATAKA STAMP

(PREVENTION OF UNDERVALUATION OF INSTRUMENTS)

RULES, 1957

Note: This electronic version of the rules is reproduced for your convenience and personal use only and may not be copied for the purpose of resale in this or any other form. Formatting of this electronic version may differ from the official, printed version. Where accuracy is critical, please consult official gazette notifications.​

   
   

GSR 81. - In exercise of the powers conferred by Sections 45-A and 68 of Karnataka Stamp Act, 1957 (Karnataka Act No. 34 of 1957) the Government of Karnataka hereby makes the following rules, namely :



​Title and commencement

​

1. (1) These rules may be called the Karnataka Stamp (Prevention of Undervaluation of Instruments) Rules, 1977.

(2) They shall come into force at once.









​Definitions

​2. In these rules, unless the context otherwise requires, -

(a) Act means the Karnataka Stamp Act, 1957 (Karnataka Act No. 34 of 1957) ;

(b) Authorised agent means -

(i) a person holding a power of attorney authorising him to act on behalf of his principal ; or

(ii) an agent empowered by written authority under the hand of his principal ;

(c) Form means a form appended to these rules ;

(d) Registering Officer means the registering officer appointed under the Registration Act, 1908 (Central Act XVI of 1908) ;

(e) Section means a section of the Act.

​

 

 
   

Furnishing of statement of market value

  

​

 
 

3. (1) If an instrument relates to a number of items of properties, the market value shall be specified in respect of each item separately. For this purpose the party executing the document shall attach a separate statement to the instrument, furnishing therein information about the various items of properties involved and his own assessment of the market value of each of these items separately (in Form I)

 

   

  1. Published in the Karnataka Gazette, dated 10-3-1977, vide Notification No. RD 73 EST 74, dated 2-3-1977

​

​

 

Explanation. - (1) If an instrument covers land comprising several survey numbers of sub-division numbers, the market value shall be specified for the land covered by each survey number or sub-division number as the case may be separetly.

(2) The registering officer shall, before registering an instrument, satisfy himself that the party has attached with the instrument a statement, giving the market value for each of the properties separately by sub-rule (1).

(3) The registering officer may, for the purpose of finding out whether the market value has been correctly furnished in the instrument, make such enquiries as he may deem fit. He may elicit from the parties concerned any information bearing on the subject and call for and examine any records kept with any public officer or authority.

(4) For the purpose of this rule, the statement of market value shall apply only to the instruments of conveyance, exchange or gift as mentioned in Section 45-A of the Karnataka Stamp Act, 1957 .

​
Communication of Value

​

1[3A The estimated market value arrived at by the Registering Officer under section 45-A shall be communicated to the parties in Form I-A].

​

 

 
   




Procedure on the receipt of reference under section 45-A

  

​4. (1) On receipt of a reference under sub-section 45-A from a registering officer, the Deputy Commissioner shall issue a notice in Form II, -

(i) to every person by whom, and

(ii) to every person in whose favour the instrument has been executed, informing him of the receipt of the reference and asking him to submit to him, his representation if any, in writing to show that the market value of the property has been truly set forth in the instrument, and also to produce all evidence that he has in support of his representation, within 21 days from the date of service of the notice.

(2) The Deputy Commissioner may, if he thinks, fit, record a statement from any person to whom a notice under sub-rule (1) has been issued.



 
  1. Inserted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.



​

 

(3) The Deputy Commissioner may for the purpose of his enquiry, -

(i) call for any information or record from any public office, officer or authority under the Government or any local authority ;

(ii) examine and record statements from any member of the public, officer or authority under the Government or the local authority; and

(iii) inspect the property after due notice to the parties concerned.

1[(4) ]. Omitted.​

​















Principles for determination of market value​
 

5. The Deputy Commissioner shall, as far as possible, have also regard to the following points in arriving at the 2[xxx] market value : -

(1) In the case of lands, -

(i) classification of the land as dry, garden, wet and the like ;

(ii) classification under various classes of soil in the survey records ;

(iii) the rate of revenue assessment for each classification ;

(iv) other factors which influence the valuation of the land in question;

(v) points, if any, mentioned by the parties to the instrument or any other person which require special consideration ;

(vi) value of adjacent land or lands in the vicinity ;

(vii) average annual yield from the land for five consecutive years till the determination and nearness to road and market, distance from village site, its location in general, level of land, transport facilities, facilities available for irrigation, such as tanks, wells and pumpsets;

(viii) the nature of crops raised on the land.

(2) In the case of house sites,-

(i) the general value of house sites in the locality ;

(ii) nearness to road, railway station, bus route ;

​

 

   
  1. Omitted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.
  2. The word Provisional omitted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.



​

 

(iii) nearness to market, shops and the like ;

(iv) amenities available in the place like public offices, hospitals and educational institutions ;

(v) development activities, industrial improvements in the vicinity ;

(vi) land tax and valuation of sites with reference to taxation records of the local authorities concerned ;

(vii) any other features having a special bearing on the valuation of the site ; and

(viii) any special features of the case represented by the parties.

(3) In the case of buildings, -

(i) area of the land ;

(ii) plinth area and built up portion in each of the storeys ;

(iii) year of construction ;

(iv) material of the wall and material of the roofing ;

(v) locality in which constructed ;

(vi) amenities provided such as water supply, electric supply (ordinary or all electric), sewerage, well and garage ;

(vii) rate of depreciation ;

(viii) fluctuation in rates ;

(ix) any other features that have a bearing on the value ;

(x) property tax with reference to taxation records of local authority concerned ;

(xi) the purpose for which the building is being used and the income, if any, by way of rent per annum secured on the building ; and

(xii) any other special feature having bearing on the valuation.

(4) Properties other than lands, house-sites and buildings, -

(i) the nature and conditions of the property ;

(ii) purpose for which the property is being put to use ; and

(iii) any other special features having a bearing on the valuation of the property.

​

​

 

 

1[6. Procedure after arriving at provisional market value. - Omitted]

​





2[Order] determining the market value​

 

7. (1) The Deputy Commissioner shall after considering the representations received in writing and those urged at the time of the hearing and after a careful>

(2) A copy of the order shall be communicated to the Registering Officer concerned 4[to take steps to collect the difference in the amount of stamp duty, if any and register the document].

​



Appearance through advocate or authorised agent​

 

8. In an enquiry under the foregoing rules, any party to an instrument may appear either in person or through an advocate or an authorised agent.

​






Appeals

​

9. (1) An appeal under sub-section (5) of Section 45-A shall be preferred to the Divisional Commissioner of the Revenue Division within two months from the date of communication of the Deputy Commissioners orders determining the market value under Rule 7 5[and the Appellant shall deposit, fifty percent of the difference in the amount of duty as determined by the Deputy Commissioner under Sub-sections (2) and (3) of section 45A, through a challan or Demand Draft / Pay Order / Bankers Cheque drawn in favour of the Appellate Authority. The said amount shall be adjusted after the appeal is disposed off and in case no amount is required to be paid by the appellant the amount shall be refunded].

(2) The appeal shall contain the following particulars, namely. -​

 

   
 
  1. Rule 6 omitted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051. [Please note Form III is not in force in view of omission of Rule 6].
  2. For words final order the word order is substituted by Notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.
  3. Omitted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.
  4. Substituted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.
  5. Inserted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.





​

(2) The appeal shall contain the following particulars, namely. -

(i) full name, fatherss name, or husbands name, occupation and address of the applicant ;

(ii) full name, fathers name, or husbands name, occupation and address of every person executing the instrument.

(iii) full name, fathers name, or husbands name, occupation and address of every person claiming under the instrument ;

(iv) date and nature of the instrument ;

(v) registration number, date of registration and name of office where the instrument was registered ;

(vi) name of city, town or village in which the property is situated together with the name of the taluk and the registration sub-district;

(vii) number and date of the Deputy Commissioners order which is appealed against ;

(viii) market value of the property as set forth in the instrument ;

(ix) market value of the property as determined by the Deputy Commissioner.

(3) every appeal shall be accompanied by -

(i) the original or certified copy of the order appealed against ;

(ii) the original or a certified copy of the instrument ; and

(iii) memo of grounds of appeal

(4) Every appeal shall be presented in person or by an advocate or by the authorised agent to the Divisional Commissioner of the Revenue Division having jurisdiction who shall endorse the date or receipt.​

 

 




Procedure for the disposal of appeal

​

 

 
 

10. (1) If the Divisional Commissioner of the Revenue Division admits the appeal, a date shall be fixed for hearing the appellant. The Divisional Commissioner of the Revenue Division shall issue a notice to the appellant informing him of the date on which and the time and place at which the appeal shall be heard. Such notice also state that if the appellant does not appear on the day so fixed or any other day to which the hearing may be adjourned, the appeal may either be liable to be dismissed for default or disposed of on merits.​

​

​

 

(2) The Divisional Commissioner of the Revenue Division shall send a copy of the notice to the Deputy Commissioner together with a copy of the appeal and call for and obtain the records of the case from the Deputy Commissioner.

​



Hearing of appeal

​

11. On the date fixed or on any other date to which the case may be adjourned, the Divisional Commissioner of the Revenue Division shall hear the appellant and the person, if any, appearing on behalf of the Deputy Commissioner.​​

 

 
   





Order in appeal

  

​

 

12. After hearing the appeal under Rule 9 and examining the records of the case, the Divisional Commissioner of the Revenue Division shall decide whether or not the market value of the properties as determined in the order of the Deputy Commissioner under sub-section (2) or sub-section (3) of Section 45-A is correct. In case, the Divisional Commissioner of the Revenue Division does not accept the valuation of the properties made by the Deputy Commissioner, he shall determine the correct market value of the properties, and the duty payable on the instrument. The Divisional Commissioner of the Revenue Division shall embody his decision and the reasons therefor in an order and communicate it to the appellant, the Deputy Commissioner and the registering officer concerned.

​

 

 
   

Return of records to Deputy Commissioner

  

​

 

13. As soon as possible after the order is passed the Divisional Commissioner of the Revenue Division shall return the records of the Deputy Commissioner to that officer.

​

 

 
   






Rules of procedures

  

​

 

14. (1) The Divisional Commissioner of the Revenue Division may adjourn the hearing of the appeal from time to time, as he thinks fit.

(2) The Divisional Commissioner of the Revenue Division may at any stage call for any information, record or other evidence from the appellant or the Deputy Commissioner.

(3) In the appeal, the appellant may appear either in person or through an advocate, or an authorised agent.

(4) In respect of matters not provided for in these rules, the provisions of the Code of Civil Procedure, 1908 (Central Act V of 1908), relating to the procedure to be followed in appeals, shall, as far as may be apply to appeals under sub-section (5) of Section 45-A.

​






















Manner of service of notice and orders to the parties​

15. Any notice or order under Rule 4 or 7 shall be served in the following manner, namely :-

(1) In the case of any company, society or association of individuals, whether incorporated or not, be served, -

(i) on the secretary or any director or other principal officer of the company, society or association of individuals, as the case may be ; or.

(ii) by leaving it or sending it by registered post acknowledgment due, addressed to the company, society or association of individuals as the case may be at the registered office, or if there is not registered office, then at the place where the Company, society or association of individuals as the case may be, carries on business ;

(2) In the case of any firm be served :

(i) upon any one or more of the partners ; or

(ii) at the principal place at which the partnership business is carried on, upon any person having control>

(3) In the case of a family, be served upon the person in management of such family or of the property of such family, in the manner specified in clause (d) ;

(4) In the case of an individual person, be served, -

(i) by delivering or tendering the notice or order to the person concerned or his counsel or authorised agent ; or

(ii) by delivering or tendering the notice or order to some adult member of the family ; or

(iii) by sending the notice or order to the persons concerned by registered post acknowledgement due ; or

(iv) if none of the aforesaid modes of service is practicable, by affixing the notice or order in some conspicuous part of the last, known place of residence or business of the concerned.

Prevention of Undervaluation Rules​



FORM I

[See Rule 3]

Statement of particulars of property and its market value under Rule 3 of the Karnataka Stamp (Prevention of Undervaluation of Instruments) Rules, 1977.

Sub-Registrar's Office

No. of Doct. and year

Address of claimant

Ref.place where property is situated

 

Particulars of land held by the claimant

Dry

Wet

Bagayat

Average annual yield

Amount

Rs.

P.

        

1. Area of land in Hectares

          

2. Type of land

          

3. Revenue Assessment

          

4. Structures, if any

          

5. Any other factors.

          

 

6. Particulars of Sq.ft. House / Site

Measurement

Sq.ft.

Qty. Sq.yd.

per

Rate

Amount

  
           

Rs.

P.

(1) Area of the Site

(2) Type of Building

(3) Plinth area

(4) Type of wall

(5) Type of roof

(6) Total Rate applicable

(7) Cost of structure

(8) Special Features:

(a) Garage

(b) Electric Installation at 5 percent

(c) Sanitary 3 percent water supply at 5 percent

(d) Well

          

 

 

 

(9) Total Cost of Structure including special features

Qty.

Sq.yd.

per

Rate

Amount

Rs.

Ps.

      

(10) Year of Construction ( ) depreciation

(11) Net valuation of structures

        
  1. Market value of property as above

    8. Market value as set forth in the document

    9. Difference in value (percentage)

    Commissioner

    Ref. No.

    Date............................

    Government of Karnataka

    Department of Registration and Stamps

    1[Form - IA]

    (See Rule 3A)

    Form of communication under rule 3A of Karnataka Stamp (Prevention of under valuation of Instrument) Rules 1977.

    Communication of Value

    Office of the Sub-Registrar

    No. ............................... Taluk

    Date...............................

    1) This endorsement is issued in respect of the Document presented relating to the property mentioned below :

    2) In opinion of the undersigned the estimated market value of the property is Rs................ (in words).....................................accordingly it is informed to pay Stamp Duty Rs..................... (in words)..................... and Registration fee Rs................ (in words)............................................

    3) If you are willing to pay Stamp duty and Registration fee on the estimated market value as informed above affirm item No. 1 shown below and affix signature.

    4) If you are not willing to pay stamp duty Registration fee as mentioned above the Document will be kept pending without completing Registration and the matter will be referred to the Deputy Commissioner (Detection of under valuation) for determination of market value of the property under section 45A of the Karnataka Stamp Act.

    Description of Property :

    Signature of the Sub-Registrar

    Affirmation of the Presentant

    1. I agree with the valuation informed above accordingly I am prepared to pay Stamp duty and Registration Fee. The document may be registered or

    2. I do not agree with the valuation informed above. The document may be kept pending and matter may be referred to Deputy Commissioner under Section 45A of the Karnataka Stamp Act, 1957 for determination of market value.

    3. I withdraw my document from registration.

    Signature of Presentant.

    Name...........................................................................................

    Address.........................................................................................

    Note : Delete which ever is not applicable.

    1. Inserted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.



    1[Form II]

    (See Rule 4)

    Office of the Deputy Commissioner

    Form of notice prescribed under rule 4 of Karnataka Stamp (Prevention of Under valuation of Instruments) Rules, 1977.

    To,

    M/s./Sri/Smt...................................................................

    .......................................................................................

    .......................................................................................

    1. Please take notice that a reference has been received by the undersigned from the registering officer at.................................... under sub-section (1) of section 45A of the Karnataka Stamp Act, 1957 (Karnataka Act No. 34 of 1957) for determination of the market value of the properties covered by an instrument of conveyance / gift / exchange / settlement / partition / dissolution of partnership/an agreement to sell covered under sub-clause (i) of clause (e) and clause (f) of Article 5/a lease covered under item (iv) of sub-clause (a), item (ii) of sub-clause (b) item (ii) of sub-clause (c) of clause (1) of Article 30/a power of Attorney covered under clause (ea) or (eb) of Article 41/ or every decree or final order of any Civil Court *which has been presented for registration on............................. and has been assigned pending No.........................

    2. The market value as per the reference is Rupees..................... and the duty payable thereon is Rupees..........................................................

    3. You are hereby required to submit your representations, if any, in writing to the undersigned within 21 days from the date of service of this notice to show that the market value of the properties has been truly and correctly set forth in the instrument. You may also produce all evidence in support of your representation within the time allowed.

    4. If no representations are received within the time allowed, the matter will be disposed off on the basis of the facts available..

    Station :

    Date : Deputy Commissioner.

    *Delete whatever is not applicable

    1. Substituted by notification No. RD 264 MUNOMU 99, dated 18-8-1999, Karnataka Gazette dated 21-8-1999 page 1051.

Last Updated: 06-03-2021 03:52 PM Updated By: Admin


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