Proposed land use disclosure in stamp valuation upheld, but an open-ended reference period required statutory time limits.

The West Bengal stamp valuation framework permits the registering authority to consider not only existing use but also the potential value of property when determining market value under the Indian Stamp Act and the relevant Rules. On that basis, disclosure of proposed land use in the registration form was treated as a lawful part of the undervaluation-check mechanism and not contrary to the Rules. At the same time, the valuation scheme contemplates annual market-rate revision and a bounded historical reference period, so an open-ended disclosure period for proposed land use was inconsistent with the statutory design. A time frame, preferably five years, was therefore required for that column.

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Issues: Whether the column relating to "Proposed Land Use" in the registration forms could be mandatorily insisted upon for determination of market value under the stamp law, and whether the absence of any temporal limit for that entry required judicial correction.

Analysis: The definition of market value under clause 16B of section 2 of the Indian Stamp Act, 1899, read with the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001 as amended in 2010, permits the registering authority to consider not merely the existing use of the property but also its potential value. The scheme of Rules 3A to 3E, together with Rule 123 of the West Bengal Registration Rules, 1962, shows that disclosure of property particulars through the prescribed form is part of the statutory mechanism for arriving at market value and preventing undervaluation. In that context, the column for proposed land use could not be treated as illegal or contrary to the Rules. At the same time, the Rules contemplate annual revision of market rates and use of a bounded historical reference period, so an indefinite disclosure period for proposed land use was found inconsistent with the statutory scheme.

Conclusion: The insistence on disclosure of proposed land use was upheld as lawful, but the authority was directed to introduce a time frame for that column, preferably of five years, in line with the valuation scheme.

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