67cr bill on IJM

By Shariff Ameeruddin Ishaqui
Hyderabad, May 27: The stamps and registration department has asked IJM India Infrastructure Limited to pay Rs 67 crore towards deficit stamp duty.
The directive came in the course of an audit at the office of the AP Housing Board chairman. The department said the company’s execution of five deeds, including a memorandum of understanding, development and shareholders’ agreement with the APHB, had deficit stamps.
The APHB entered into an agreement with IJM to develop a 34-acre township at Kukatpally for Rs 450 crore. IJM had to pay Rs 22.50 crore, but the stamp duty borne on the document was only Rs 100.
The general power of attorney, executed by the APHB in favour of IJM, a construction agreement and an agreement between the board and the Swarandhra IJM Integrated Township Development Company Private Limited, had lesser stamp duty. IJM was liable to pay Rs 67,50,49,690 for the five deeds executed between the board and the company.
In a warning to the company while issuing the notice on April 28, the deputy inspector general of registration and stamps said action would be initiated for recovery of stamp duty loss. IJM’s company secretary, Mr D.B. Venkat Reddy, has challenged the notice.
He said the department had issued another notice on May 17, asking it to pay the deficit amount. He contended that the High Court had struck down Section 3 of the Indian Stamps Act, 1899 and the respondent had no power to undertake issue notice under the Act.
He said the court had suspended the notices issued by the district registrar of assurances, Guntur, to the company last year. He urged the court to restrain from taking action pertaining to the notice.