Indian Stamp Act | Registering Authority Cannot Mechanically Refer Sale Deed To Collector, Prima Facie Finding On Undervaluation Needed : Supreme Court

The Supreme Court clarified that the registering authority cannot automatically refer a sale deed to the Collector under the Indian Stamp Act without establishing a prima facie case of undervaluation. In a case involving the sale of property at a lower value than its market price, the Court stated that the registration authority must first ascertain whether there is a genuine suspicion of undervaluation before referring the deed. This ruling is significant for protecting individuals from arbitrary actions by registering authorities and ensuring transparency in property transactions.