THE HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO W.P.NO.16902 OF 1997 ORDER: This writ petition has been instituted by the Gram Panchayat, Nakerekal in Nalgonda District, seeking a writ of certiorari, calling for records relating to Memo.No.8/SA/DR/97, dated 04-03-1997, issued by the District Registrar, Nalgonda, the 2nd respondent herein, and for quashing the same. The 2nd respondent District Registrar directed the Executive Officer of the writ petitioner Gram Panchayat to collect and remit a sum of Rs.3,25,932/- to the Registration and Stamps Department, through an Order issued by him earlier on 07-02-1997, on the ground that no further action has been taken in that regard, the present impugned Order has been passed on 04-03- 1997 to effect recovery of Rs.3,25,932/- by him from various persons, whose transactions, involving transfer of immovable property, have been recorded erroneously by the Executive Officer of the writ petitioner Gram Panchayat. Therefore, the consequential revenue loss was ordered to be recovered from out of the transfer duty payable to the Gram Panchayat. A detailed counter affidavit has been filed. It has been pointed out that under Section 73 of the Indian Stamp Act, the District Registrar has been appointed as the Collector & Authorized Officer, for the purpose of undertaking inspection of Registers, Books, Records, Documents, etcetera and he has also been conferred the power to seize them and also impound the same. When the records of the Writ petitioner - Gram Panchayat have been inspected, it was found that the Gram Panchayat has recorded mutations on the basis of sale transactions of immovable properties lying within its limits. The said sale transactions have not been properly stamped. Therefore, it has been assessed that a revenue loss to the tune of Rs.3,25,923/-, to the State Government, has been caused in the process. Hence, the District Registrar, exercising the power of the Collector, has raised a demand for collection and payment of loss of revenue as aforementioned and the said Proceedings have been issued on 07-02-1997 and in spite of the same, the Executive Officer of the Gram Panchayat failed to collect the deficit stamp duty from the holders of the instruments, which have been recorded with the Gram Panchayat in its records. In terms of Section 33 of the Indian Stamp Act, it is the duty of every person-in-charge of a public office to impound any document when it appears that such an instrument is not duly stamped. The Executive Officer, therefore, is required to collect the deficit stamp duty and remit the same to the Government. Since, he has failed to do the same, powers under Section 27 of the Indian Stamp Act, have been invoked and the transfer fee, which is liable to be transferred to the Gram Panchayat, Nakerekal, was asked to be stopped to the extent of not recovering the revenue loss. From a perusal of the record it become instantaneously clear that whenever an audit or inspection of the public offices is undertaken by the District Registrar, who has been conferred the powers of the Collector under Section 73 of the Indian Stamp Act, he is under duty to ensure that the deficit stamp duty is liable to be recovered. In fact, the learned Government Pleader for Revenue has also brought to my notice Circular Memo. No.SA2/20459/92, dated 06-09-1995, issued by the Commissioner & Inspector General of Registration & Stamps, Hyderabad, in that regard. The learned Government Pleader has also drawn my attention to the Provisions contained in Section 27 of the Indian Stamp Act, which enables such powers to be exercised by the District Registrar. But however, it would be appropriate to notice that the Gram Panchayat, being a body incorporated for serving the public, is also required to effectively meet its own obligations and functions. It cannot do so without having enough financial resources. One of its sources of income is the remittance of proportionate transfer duty with regard to the transfer of immovable properties lying within its limits and jurisdiction. If the said amount is withheld or stopped from being paid to the Gram Panchayat, it will suffer for want of finances and the various developmental activities, which the Gram Panchayat is likely to plan will suffer a great deal. Therefore, with a view to balance the interests of the State on one hand and the Gram Panchayat on the other, I consider it appropriate to direct the writ petitioner Gram Panchayat, Nakerekal, to immediately take measures against all those persons, concerned with the transactions, which gave raise to the assessment of loss of revenue to the State, as was found out by the District Registrar during his audit in terms of Section 73 of the Indian Stamp Act, and recover the deficit stamp duty after putting such persons on notice and remit the same to the State Government within a maximum period of six months from now, at any rate, the Gram Panchayat shall complete the recovery of the revenue that has escaped because of the mutations recorded by it in respect of the instruments not being properly and duly stamped relating to the transactions and remit the same to the State Government on or before 31-12-2010. If the Gram Panchayat fails to remit the same or a portion of it, to the extent of the default committed by it, the transfer fee liable to be remitted to the Gram Panchayat account may be withheld. With this directions, the writ petition is disposed, but however, without costs. --------------------------------- Nooty Ramamohana Rao, J mrk 8th April 2009