Steps to ensure conveyance deeds of sale of property by the Central Government. - Income Tax - 1933/1996

INSTRUCTION NO. 1933/1996 Dated: January 11, 1996 The immovable properties purchased by the Appropriate Authorities are being disposed of by sale in public auction or by the process of inviting sealed tenders, by the Chief Commissioners of the region where the property is located. The Chief Commissioner acts on behalf of the Central Government in arranging sale of the property and realisation of the entire sale proceeds. After completion of the sale and realisation of the entire sale proceeds, the purchasing party is required to prepare a draft conveyance deed for execution by Director (OT) or under Secretary (OT) on behalf of the Central Government. The draft conveyance deed is to be submitted to the Chief Commissioner who after verification of the factual details, sends it to the Department's Solicitor or the Department's Standing Counsel for his examination and vetting. After the receipt of the draft conveyance deed duly vetted, the purchasing party is to be requested to pay the necessary stamp duty charges and present the final conveyance deed on stamp papers for execution and signing by the Central Government's authorised officer. 2. It has, however, been experienced that in some cases the purchasing party defers the execution of the final conveyance deed and the other also defers payment of the stamp duty. In many cases, the parties have come forward for execution of the conveyance deed after 3-4 years of the auction proposals when they want, legal title over the property due to some reason. The Chief Commissioner's office often does not ensure that the parties pay the required stamp duty and the final conveyance deed is executed within a reasonable time of 3 to 4 months after completion of the sale. 3. On a reference made to the Ministry of Law in a case where the purchasing party was not willing to pay the required stamp duty and for execution of the regular Conveyance deed, the Ministry of Law has observed that the Central Government should always insist upon execution of the conveyance deed by payment of the stamp duty by the purchasing party. Once a property vests in the Central Government, all the rights and liabilities attached with the property come to the Central Government and these liabilities include liability to pay taxes, water charges etc. If any illegal act is committed or damage to another's property or life is caused due to any act done or due to lack of maintenance of the property, the Central Government can be held responsible for damages unless it has executed a formal conveyance deed and got it registered with the Registrar. 4. In view of the above, you are requested to take steps to ensure that in all cases of sale of property by the Central Government, the formal conveyance deeds are presented for execution by the purchasing party within a reasonable time of 3 to 4 months after completion of the sale and payment of the complete sale price.