Revenue officials indulging in dual practices, says Punjab and Haryana High Court

Saurabh Malik

Chandigarh, February 23

In a significant judgment liable to change the way revenue authorities maintain dual standards causing loss to the state exchequer and the Income Tax Department, the Punjab and Haryana High Court has made it clear that they ignore much higher real estate market rates at the time of property registration. But they refer to the market rates –– occasionally significantly inflated rates –– for assessing compensation for land acquisition.

Authorities at fault

Justice Chitkara observed it was a matter of common knowledge that real estate market rates were much higher than the collectorate rates in most places. Yet, most revenue authorities never pointed out the actual market rates and issued valuation certificates at the collectorate rates/circle rates. They mostly refrained from updating the data to facilitate the adjustment of black and undeclared money in property transactions

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The assertion came as Justice Anoop Chitkara ruled that the government must deal with the “corrupt ones” with a firm hand because “if the termite of corruption is allowed to fest at this rate it would slowly but surely bleed state exchequer dry and make our foundations hollow”.

Justice Chitkara was hearing a patwari’s anticipatory bail plea in a corruption and cheating case registered in February 2017 by the economic offences wing of the Vigilance Bureau. The state’s stand was that the petitioner determined land value for compensation at rates much higher than the prevalent market rates for commercial properties, though he was bound to follow collectorate rates.

Justice Chitkara observed the rate of adjacent lands increased whenever land was acquired for a national highway. It was a matter of common knowledge that real estate market rates were much higher than the collectorate rates in most places. Yet, most revenue authorities never pointed out the actual market rates and issued valuation certificates at the collectorate rates/circle rates. They mostly refrained from updating the data to facilitate the adjustment of black and undeclared money in property transactions.

Justice Chitkara observed that the state exchequer received lesser registration and other fees. The Income Tax Department suffered losses as the capital gain tax was less. It also resulted in a fatal blow to the system by providing a fool-proof method to corrupt government employees to launder ill-gotten and bribe money; to criminals to adjust proceeds of crime and illicit money; and to others to adjust undeclared income.