After Madras HC order, IGR issues advisory on concession in stamp duty, registration fee in Special Economic Zone area

The Inspector-General of Registration has issued an advisory to registering officers across Tamil Nadu that concession on stamp duty and registration fee could be granted to properties in the processing zones and non-processing zones in the Special Economic Zone (SEZ) Area, only if necessary certificates were issued by the respective Development Commissioners.

The advisory issued earlier this month followed a judgment of the Madras High Court in a case in this regard. Referring to the judgment, the IGR said the document should invariably contain the details whether the property was in processing area or in non-processing area. “If the details are not provided in the document, then stamp duty and registration fee concession shall not be allowed.”

If the property was in the processing area, the concessions provided in the Special Economic Zones Act, 2005 shall be provided subject to fulfilment of certain conditions, it said. “Any instrument comprising land or building or both and which is executed, by, or, on behalf of, or, in favour of the Developer, or Unit or in connection with the carrying out of purposes of the SEZ have become eligible for stamp duty remission.”

It clarified that registration fee remission would not be available to instruments comprising any other property other than land such as building, machinery etc. “If the property is in a non-processing area, then the above concession shall be allowed only if a certificate from the concerned Development Commissioner, SEZ is produced confirming that the non-processing area is established for social or commercial infrastructure and other facilities are to be used only for Special Economic Zone purposes.”

If the property was in a non-processing area and if the certificate was not produced, the concession shall not be allowed by the registering officers, it said.

The District Registrars (Audit) of the district concerned should monitor the registration of the documents while in the audit and to verify if the instructions have been followed without any lapses. They were also to check if there was any loss to the government. “If any lapses are found then it should be immediately reported to this office [office of the IGR] through concerned DIGs for taking necessary action.”