‘MHA yet to respond to audit reference on recovery, penalty issue’
Bivek Mathur
JAMMU, Dec 25: The Comptroller and Auditor General (CAG) of India has flagged serious irregularities in the levy of stamp duty in the Union Territory of Ladakh, which resulted in a loss of Rs 92.82 lakh to the Government exchequer.
In a report tabled in the Parliament on December 18, the CAG claimed that during a test check of records of the Chief Judicial Magistrate, Leh, it was found that 4, 679 land deeds with a total market value of Rs 4,675.57 lakhs were executed between April 2017 and October 2019.
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Quoting the Jammu and Kashmir Stamp (Amendment) Act, 2011, it said, a stamp duty at the rate of 2% was required to be levied on these deeds.
“However, stamp duty was short levied by the authorities in respect of 42 cases of family settlement deeds and 4 cases of partition deeds, which resulted in loss of revenue to the extent of Rs 92.82 lakh to the Government exchequer, as only Rs 0.69 lakh were collected in stamp duty against the expected collection of Rs 93.51 lakhs,” it said.
The audit also pointed out that an additional penalty of Rs 53.45 lakh was recoverable but was not imposed by the concerned department.
Under the Jammu and Kashmir Stamp (Amendment) Act, 2011, stamp duty at the rate of two percent is mandatory on the market value to the separated share in partition deeds and on the market value of property settled through family settlement deeds.
Despite clear statutory provisions, the prescribed duty was not charged in these cases, the CAG report said.
The audit further observed that the Act empowers authorities to impound inadequately stamped instruments and recover the deficient duty along with a penalty calculated at two percent per month of the shortfall.
Based on these provisions, penalty amounting to Rs 53.45 lakh was recoverable from the concerned parties up to October 2020, the CAG report said.
It further said in its response, the Chief Judicial Magistrate Leh informed in August 2021 that notices would be issued to the concerned parties for recovery.
“Subsequently, the Registrar, now Additional Deputy Commissioner Leh stated in July 2024 that stamp duty was being imposed strictly as per rules after January 2020,” the report said.
It added that in October 2024, the department admitted short levy of stamp duty in 46 cases but claimed that no penalty was imposed as the J&K Stamp Act 1977 had been repealed in October 2020.
The CAG rejected this justification, stating that penalties pertaining to the period prior to repeal were still recoverable under the provisions of the Act.
It said the matter was accordingly referred to the Ministry of Home Affairs in May and August 2024 for its comments.
“However, no response had been received from the Ministry as of June 2025,” the report noted.
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