Registration Fee to Be Refunded if Property Registration Is Cancelled

Bengaluru, Jul. 7: The High Court has ordered that a petition seeking refund of stamp duty and registration fee paid in advance cannot be rejected if the transaction is cancelled before the completion of the property registration process.

A single-judge bench headed by Justice Sachin Shankar Magadum passed this order while hearing a petition filed by Gopalrao of Belgaum challenging the action of the District Registrar who rejected the refund application on the pretext of delay. It has also ordered that the petitioner's petition be reconsidered within the next eight weeks.

There is no specific time limit prescribed under Section 52A of the Karnataka Stamp Act, 1957 for requesting refund of fees. It is illegal for the authorities to voluntarily impose a time limit of one year without any basis in law or circular. Also, as per Rule 193 of the Karnataka Registration Rules, 1965, it has been stated that the applicant shall have full right to withdraw the documents submitted by him before the registration process is officially completed. The government has no right to keep the public money when the transaction is cancelled. According to the rules, the copying cost and half the registration fee should be deducted and the remaining money should be returned to the buyer. If the proposed property transaction is abandoned midway without being completed, then the intention of the law is to provide fair compensation to the public. It has been directed to the Belgaum District Registrar to examine the refund request of the applicant afresh and issue an appropriate order under the provisions of the Karnataka Stamp Act.

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