Legal Question in Banking Law in India

A propertywas auctioned under SARFAESI act and all the necessary rules were followed by the Bank as per the act. I purchased the same and registered the property paying Stamp Duty on Sale Consideration and not on the market Value ( The Property is Located in Uttar Pradesh ). Now I have received notice from Collector saying we evaded the stamp duty and we must Pay at the market value . We laid stress on Section 18(I) of Indian Stamp act where it says where there is a public auction the stamp duty would be paid on the actulal sale consideration only and not on the market value.

The Government lawyer is however stressing that this auction cannot be considered public as its by inviting tenders and has given some reference of High Court cases. Can anyone help me with a court order which can prove that property auctioned as per the procedure of SARFAESI act will be considered as public auction or any court order where its defined that when auction is conducted inviting public bids , it is a Public Auction.

Many Thanks in advance for your answers and Help


Asked on 3/21/10, 12:53 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

It is public auction by an authority under statute. contest the matter. As of now we have no precedent. Try your luck thru your lawyer in the High Court.

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Answered on 3/21/10, 5:39 am


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