Refund excess charges paid by property buyers: HC

CHENNAI: The Madras High Court on Monday directed the State government to refund the excess charges collected from the property buyers with six per cent interest. The confusion started with the state collecting newly amended fees for the sale certificates where the petitioners contended that the state charged extra certificate fees ignoring the cut-off date deadline fixed for the revision of charges.

Justice R Suresh Kumar took up a batch of petitions seeking to register the sale certificate in Book No.1 in terms of Section 89 (4) of the registration act and refund the registration charges collected with interest.

“If we look at the impact of these amendments in the context of the present cases, in all these cases, they have the sale certificate which they have filed before the registering authority for filing the same in Book No.1 under Section 89 (4) of the Act,” the justice observed.

Therefore, all these things had happened well prior to the cut-off date (March 28, 2023), ergo in my considered opinion, this amendment would not in any way alter the situation in respect of this batch of cases. Further, the judge directed the registering authorities to file the sale certificate in Book No.1 of the registering authority under section 89 (4) of the registration act, and also the excess stamp duty or registration fee beyond what has been received from the petitioners shall be refunded to them with 6% interest.

According to the petitioners, they had purchased immovable properties through a public auction conducted by the bank, authorised officer, or resolution professional. When these sale certificates were produced before the concerned registering authority by the petitioners it was refused, said the petitioner. In some cases, the registration authority charged them with amended charge fees before the cut-off date and sought to refund the excess charges.

Several petitioners moved the Madras High Court (MHC) seeking to direct the registration department to register the sale certificate in Book No.1 in terms of Section 89 (4) of the registration act and refund the registration charges.