Whether in respect of sale of property through court auction, the stamp duty is to be paid on market value or on the purchase price at the auction – M/s Chirag & Company Pvt. Ltd. Vs. Additional Deputy Commissioner-cum-Collector Shaheed Bhagat Singh Nagar, Punjab and others – Punjab & Haryana High Court

Hon’ble High Court held that it must be kept in mind that at times public auctions do not always reflect the correct market value and may be by way of distress sale as well. It is not always necessary that a public auction would in all circumstances fetch the market value or be sold at the collector’s rate as fixed. Division Bench at Calcutta Court in Ballyfabs International Limited v. State of West Bengal (2022) ibclaw.in 97 HC held that once the sale is effected by an authorized officer under SARFAESI Act by making wide publication in the widely circulated newspapers, shall be regarded as the open market sale and, therefore, the registering authority cannot have any reason to believe that the sale price has been shown under-valued having not sold in the open market.

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