MUMBAI: The Bombay High Court has ordered the state government to refund Rs 3 lakh in stamp duty to a homebuyer who accidentally paid the amount under an incorrect stamp duty category.
The petitioner, represented by advocate Charanjeet Singh Chandrapal, had purchased electronic stamps in March 2018 for registering a flat purchase agreement. However, due to an error, he selected the wrong option instead of “Non-Judicial Stamps.” When he sought a refund, his application was denied by the Collector of Stamps in Borivli, citing a delay of two months and eight days beyond the six-month statutory limit.
Both the Collector and the Chief Controller of Revenue Authority upheld the denial, leading Singh to appeal to the High Court. Justice Jadhav stated that it was a “procedural technicality defeating legitimate entitlement.” The court recognized that Singh’s payment error was unintentional, the stamps had not been utilized, and the delay, partly due to documented health issues, did not justify the State keeping the funds.
“The Government cannot unjustly enrich itself by forfeiting the stamp duty amount deposited under a wrong head,” Justice Jadhav remarked, adding that a citizen should not be penalized for an inadvertent mistake leading to financial loss for the State without lawful authority.
V.S. Nimbalkar, Assistant Government Pleader, represented the State, while Amol Ghayal, Supervisor at the Collector of Stamps in Borivali, was present during the proceedings.
