Circle-rate fixation under stamp valuation rules was challenged for arbitrariness and excessive delegation, prompting judicial scrutiny.

Rule 4(2) of the Uttar Pradesh Stamp (Valuation of Property) Rules, 1997 was challenged as involving excessive delegation and arbitrariness in the fixation of circle rates for stamp duty purposes. The HC treated the challenge as raising a serious issue requiring examination and directed notice to the Advocate General, Uttar Pradesh, with counter affidavits and supporting material to be filed. No final adjudication was made on the validity of the rule or the impugned circle-rate notifications.

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Issues: Challenge to the validity of Rule 4(2) of the Uttar Pradesh Stamp (Valuation of Property) Rules, 1997 on the grounds of excessive delegation and arbitrariness in fixation of circle rates for stamp duty purposes.

Outcome: The challenge was noticed as raising a serious issue requiring consideration, notice was issued to the Advocate General, U.P., and counter affidavits and supporting material were directed to be filed; no final adjudication was made on the validity of the rule or the impugned circle-rate notifications.

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