Safe­guards wel­comed

HT Estates - - Front Page -

ten­ants do not want to pay stamp duty. Both the land­lord and the ten­ant mu­tu­ally agree on a no­tarised lease deed which most of the time re­sults in lit­i­ga­tions in civil courts,” says Jas­bir Singh Ma­lik, a Supreme Court lawyer.

Some ex­perts are of the opin­ion that lack of pe­nal pro­vi­sions in the Regis­tra­tion Act could be the rea­son why both par­ties do not abide by it. How­ever, ten­ants can be booked un­der the In­dian Stamp Act for not pay­ing stamp duty on a rent agree­ment ex­ceed­ing 11 months.

In Noida, in the past three years, the rev­enue depart­ment has booked more than 1,000 ten­ants evad­ing stamp duty by not get­ting lease deeds reg­is­tered. A penalty five to 10 times of the amount of stamp duty has been im­posed on the of­fend­ers by the court.

“The land­lords, of­ten out of greed for money and in a hurry to rent out their premises, don’t in­sist upon a reg­is­tered lease deed. They also think that it’s the ten­ant who faces the mu­sic for stamp duty eva­sion. Such land­lords, how­ever, for­get that they are more vul­ner­a­ble than the ten­ants as the lat­ter can drag them to courts by re­fus­ing to va­cate the premises,” says a rev­enue of­fi­cial in Noida.

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