Commercial Taxes Department 
(Stamps Administration and Registration)

POLICY NOTE -  2002-2003

DEMAND No. 11

The Registration Department, which is one of the oldest departments  with nearly 138 years of service, occupies the third place in generating revenue to the State exchequer,  next to the Commercial Taxes and the Prohibition  and Excise Departments.  Considering its vital role both towards the Government and the public, this department strives to ensure transparency and speedy service.  With this goal, the Department is taking steps to modernise its functioning by harnessing Information Technology and by  launching innovative measures.

1. 1.     ACTS ADMINISTERED BY THE DEPARTMENT
2. 1.      The Registration Act, 1908 (Central  Act 16/1908)
3. 2.      The Indian Stamp Act, 1899 (Central  Act 2/1899)
4. 3.      The Chit Funds Act, 1982 (Central  Act 40/82)
5. 4.      The   Tamil   Nadu    Societies Registration Act, 1975 (Tamil Nadu  Act 27 of 1975)
6. 5.      The   Tamil   Nadu   Non-Trading Companies Act, 1972 (Tamil Nadu Act 16 of  1972)

         ACTS   PARTIALLY   ADMINISTERED   BY   THE  DEPARTMENT

1. 1.  The Indian Partnership Act, 1932 (Central Act 9 of 1932)
2. 2.  The Births, Deaths and Marriages Act, 1886 (Act No 6 of 1886)
3. 3.  The Parsi Marriage and Divorce Act, 1936 (Act  III of 1936)

4.  The Births and Deaths Act, 1969 (Central Act 18 of 1969)

5.  The Special Marriages Act, 1954.(Central Act  43 of 1954)

6.  The Hindu Marriages Act, 1955 (Act 25 of 1955)

1. 7.  Indian Christian Marriages Act, 1872 (Central Act 15 of  1872)
2. 8.  The Dowry Prohibition Act, 1961 (Central Act 28 of 196

2.  ADMINISTRATIVE SET UP

1. a.     Head Quarters

The Inspector General of Registration is the Head of the Department.  He also functions as the -

1. a)   Chief Controlling Revenue Authority under the Indian Stamp Act,1899

b)   Registrar of Chits under the Chit Funds Act, 1982

1. c)   Registrar under the Tamil Nadu Societies  Registration Act, 1975                  
2. d)   Registrar under the Tamil Nadu Non-Trading Companies Act, 1972.

The following officers also form part of the Headquarters:

i) Additional Inspector General of Registration (Stamps and  Registration)

1. ii)  Additional Inspector General of Registration (Guidelines)
2. iii)  Additional Inspector General of Registration (Intelligence)
3. iv)   Additional Registrar (Chits & Societies) (in the cadre of Additional Inspector General of  Registration)
4. v)  Personal Assistant (General) (in the cadre of Deputy Inspector General of Registration)
5. vi)  Personal Assistant (Chits) (in the cadre of District Registrar)
6. vii)  District Registrar (Guidelines)
7. viii)  District Registrar (Inspection)
8. ix)    Accounts Officer
9. x)    Deputy Superintendent of Police (Special Vigilance Cel
10. b.     Field Offices
11. (i)    Zonal Offices

There are nine Registration zones in the State with Head quarters at Chennai, Vellore, Cuddalore, Thiruchirapalli, Coimbatore, Madurai, Tirunelveli, Salem and Thanjavur. The zones are headed by  Deputy Inspector Generals of  Registration.  The overall administration of the zone, collection of revenue, surprise inspection of registration offices, conduct of enquiries are some of  the functions of the zonal Deputy Inspector Generals of Registration . The Zonal head is also the joint Registrar of Chits under the Chit Funds Act,1982.  He is also the appellate authority against the order of the Assistant  Inspector General of Registration regarding appointment of Stamp Vendors.

(ii)    Regional Offices

There are 5 regional Assistant Inspectors General of Registration with headquarters at Chennai, Thiruchirapalli, Madurai, Tirunelveli and Coimbatore.  Inspection of Sub Registrar Offices, enquiries on petitions, test check of the audit work of District Registrar (Audit) are the primary functions of the Assistant Inspectors General of Registration.  They also inspect Societies and Chit Fund Companies. 

1. (iii)           District Offices

The State is divided into 50 Registration Districts.  Each District is headed by a District Registrar (Administration).  Twelve Registration Districts, where volume of work is heavy and the nature of work is complicated, are headed by  officers  in the cadre of Assistant Inspector General of Registration. They also act as Registrar of Societies, Deputy Registrar of Chits, Registrar of Marriages and Registrar of Firms.   The District Registrars are the appointing authority for Stamp Vendors.

1. (iv)   Audit Units

In order to ensure hundred percent audit of all the accounts of the registration offices the Department has a well defined system of internal audit.  There are 45 audit units headed by District Registrars. 

(v)   Sub Registrars’ Offices

There are 600 Sub Registrar Offices in the State.   Besides registering documents, the Sub Registrar  also acts as the Registrar of  Marriages under the Hindu Marriages Act and the Marriage Officer under the Special Marriages Act.  They  also act  as Assistant Registrars under the   Chit Funds Act, 1982.

  (vi)  Registration   Training  Institute

Being a revenue oriented department administering various Acts, imparting of training and updating of knowledge of the employees on the various provisions of the Act is very important.  The Registration Training Institute, headed by a Director in the cadre of Deputy Inspector General of Registration with two lecturers, has been functioning since 1996.  Upto 31.3.2002, 1953 personnel have been given training in the institute.  The track record of this Institute is so impressive that the National Institute of Public Finance and Policies has proposed to utilise this Institute to impart training to the Registration staff of other States.

3.  SPECIAL   FUNCTIONS   OF  THE   DEPARTMENT

1. i)    Chief Controlling Revenue Authority

The Inspector General of Registration is also the Chief Controlling Revenue Authority under the Indian Stamp Act. He has powers of control and revision over the functions of a Collector under the Stamp Act.  He is also appellate authority against the orders of the Collectors under Section 47(A) of the Indian Stamp Act fixing market value.  He is empowered to make suo-motu revision of the orders of Collector which are prejudicial to the revenue of the State.

ii)  Guideline Cell

The Registering Officers have been provided with Guideline Value  Registers, indicating the approximate value of lands for all the survey numbers of all villages and streetwise for Towns in their jurisdiction.  This is done in order to protect the revenue interest of the Government.  Guideline Values enable the Registering officers to levy appropriate quantum of stamp duty.

A ‘Guideline Cell’ is functioning under the Chairmanship of  an Additional Inspector General  of Registration(Guidelines)and it undertakes preparation of guideline registers,  revision of guideline values  and correction of anomalies in the guideline values.  The other constituents of the Cell are the District Registrar (Guidelines) as Secretary, the respective Zonal Deputy Inspectors General of Registration and District Registrars as Members. The Joint Commissioner, Land Acquisition who functions under the control of the Commissioner of Land Administration, Chennai, has also been included in the Guideline Committee as a member to make the guideline fixation more realistic and objective.

Revision of guideline values is done every  year in respect of areas falling under Chennai Metropolitan Development Authority, Corporations, Municipalities, Town Panchayats and Villages falling within the notified Local Planning Area as per Sec. 10(1) of the Town and Country Planning Act 1971 and once in three years  in respect of  Village Panchayat areas.  The Guideline Value of   Urban   properties  were   lastly   revised  on 1-4-2002  and in respect of Panchayat areas on 1.4.2000.

In order to  be  public-friendly and transparent, copies of Guideline Value Registers have been supplied to Chambers of Commerce, Agricultural and Merchant Associations and to the Village  Panchayats. The Guideline Value  for all the 600 Sub Registrars' offices are available on the internet  at  http://registration.tn.nic.in 

iii)  Intelligence Cell

This Cell is entrusted with the inspection of buildings  to find out suppression of facts if any in the documents resulting in loss of stamp duty. The cell also attends to audit paras of Accountant General and the reports relating to Internal Audit.  The Intelligence Cell is headed by an Additional Inspector General of Registration.  He is assisted by eight District Registrars, four Sub Registrars  and two Assistant Executive Engineers.  In order to clear huge pendency  and to ensure quick return of documents, all the registering officers have been authorised to take up field inspection.

4. INDIAN STAMP ACT

1. (i)   Revenue Generation

The revenue by way of stamp duty and registration fee etc, which was merely Rs.40 Crores in 1968-69, has gone upto Rs.1264.20 Crores in 2001-2002.  The  growth of revenue during the current financial year as compared to the previous year (2000-2001) works out to 15.54%.

      DETAILS OF REVENUE COLLECTED  IN  THE  PAST  10  YEARS

(ii)   Documents referred to Special Deputy Collector (Stamps)  under Sec.47-A(1) of  the Indian Stamp Act

If, at the time of registration the market value set forth in the document is below the Guideline Value Register and the executant does not agree to pay the stamp duty for the difference in value, the registering officer is required to refer the document to Special Deputy Collector (Stamps) under Section 47-A(1) of the Indian Stamp Act for determining the market value of the property based on which the stamp duty to be paid is decided.

iii.  Surcharge on stamp duty

For documents of sale, gift, mortgage   with possession etc, transfer duty is collected at the rate of 5%,  in addition to stamp duty.  10% of the proceeds under transfer duty is taken as collection charges by this department, allocating the remaining 90% to the Corporations and Municipalities.  In respect of Town Panchayats and Village Panchayats 3% is retained by the department as collection charges and 97% of the transfer duty is allocated to these local bodies.

5.  ADMINISTRATIVE REFORMS -  AMENDMENTS TO   ACTS

(a) Registration Act  Amendments effected

(i) Based on the recommendation of Justice Ramanujam Committee for Administrative Reforms and Prevention of Corruption, appearance of purchaser before the registering  officer and affixing his signature in the document has been made a statutory requirement with effect from 14.4.2001 by suitably amending the Registration Act in order to eliminate benami transactions.

(ii)  To facilitate computerisation of Registration Offices, amendment to the Registration Act enabling storage of copies of documents digitally in CD-ROMs, and retrieval therefrom for granting certified copies, was made by Act No.50 of 2000,  dated 14.12.2000.            

b. Indian Stamp Act  Amendment effected

Based on the suggestions made by the Committee on Stamp Duty Reforms  constituted by the Government of Tamil Nadu, relevant Articles of the Schedule I to the Indian Stamp Act have been amended by Act No.9 of 2001 enhancing the duty chargeable on various kinds of documents effective from 11.7.2001.  This would enhance the revenue to the Government.

Amendment proposed

The Committee of State Finance Ministers for Stamp Duty Reforms, in which the Minister incharge of Registration Department, Tamil Nadu is a member, has examined the relevancy of  various provisions of the Indian Stamp Act and also the rationalisation of the stamp duty rates leviable on various kinds of instruments. Based on the Committee’s recommendations, the Model Stamp Law sent by the Government of India was examined and views were communicated to them.

6. STAMP  PAPERS 

(i) The Regional Deputy Director of Treasuries and Accounts, Chennai who is the ex-officio Superintendent of Stamps, assesses the required amount of judicial and non-judicial stamp papers, other than postal stamps for the whole of Tamil Nadu.  He then forwards and collects them from the Indian Security Press, Nasik.  All possible efforts are taken to ensure availability of stamps to the public and to prevent unscrupulous persons creating artificial demand and paucity of stamps.

1. (ii)   Franking of  documents

In the interest of the registering public especially when there is scarcity of stamps, franking of documents is allowed.  For this purpose franking machines have been installed in 15 Sub  Registrar Offices.

7. STAMP VENDING

(i) The activities of the Stamp Vendors, appointed to vend stamps to the public, are vigilantly supervised and strictly regulated by the District Registrar,  other higher officers and the Special Vigilance Cell . The total  number of Stamp Vendors in the State as on 31-1-2002  is   4996.  

(ii)  Sub  Registrars as Stamp Vendors

Sub Registrars, as ex-officio Stamp Vendors, are also selling stamp papers.  At present they are also empowered to affix special adhesive stamps on instruments and are authorised to accept cash up to Rs.10,000/- in lieu of stamps.  The need for revising these ceilings is under examination in the Government.  The Registering officers in the rank of District Registrars are empowered to receive cash in lieu of stamps without monetary ceiling towards stamp duty payable on documents under section 41 of the Indian Stamp Act.

1. (iii)  Centralised Stamp Vending Unit

          A central stamp vending unit would be opened shortly at the office of Deputy Inspector General of Registration, Chennai to make available to the public at face value judicial, non-judicial stamp papers and other stamps in pursuance of the orders of the Government to this effect.  All preparatory steps in this regard are nearing completion.

1. 8.     DOCUMENT WRITERS' LICENCE AND COPY WRITERS'  LICENCES
2. a)     Copy Writers' Licence

Licences are given under the " The Tamil Nadu Copy Writers Licence Rules, 1971" for Copy Writers on passing the test prescribed and to Typists possessing the required qualification. 

1. b)    Document Writers' Licence

Licences are given under  the Tamil Nadu Document Writers Licence Rules, 1982, to persons who  pass the  examination conducted to test the knowledge in the Registration Act and the Stamp Act for writing non-testamentary documents.

1. 9.     TAMIL NADU SOCIETIES REGISTRATION  ACT,1975               

The Inspector General of Registration and all District Registrars who are appointed under the Registration Act, 1908 are also the  Registrars under the Tamilnadu Societies Registration Act, 1975 within their respective jurisdiction. The Inspector General of Registration has powers of superintendence over the Registrars, and also powers to hear appeals.

There are  1,05,920  Societies registered as on 31-12-2001 under this Act.

10.   THE CHIT FUNDS ACT, 1982  

a) The Inspector General of Registration is the Registrar of Chits.  He, with the assistance of an Additional Registrar of Chits and one District Registrar, monitors the activities of Chit Companies which are governed by the Chit Funds Act, 1982 and the Tamil Nadu Chit Fund Rules, 1984.  The Deputy Inspector General of Registration and District Registrars are the Joint Registrars of Chits in their respective jurisdiction under the Chit Funds Act, 1982.  Further in the districts, 47 Sub-Registrars are working as Inspector of Chits.  There are 3 Special Chit Arbitrators at Chennai ( North), Chennai  (South) and (Central) and Coimbatore for Chit arbitration cases.

There are 3154   active Chit Companies  in Tamilnadu as on 31-1-2002.  The number of Chit groups conducted by them are 34,880 with the security deposits value of Rs. 273.22 Crores as on 31-1-2002.

The number of cases filed before the Chit Arbitrators during the year 2001-2002  is 3519.  The number of cases disposed of by the Chit Arbitrators is 780.  The number of cases pending as on  31-1-2002 before the Chit Arbitrators is 3433. The Chit groups are audited atleast once in the currency of the chit and once in 6 months regularly.  There have been instances of public falling prey to  unauthorised chits.  Besides the statutory measures, wide publicity is given through the media calling upon the people to be cautious and not to join unauthorised chits.

b)   Chit Vigilance Cell

A Chit Vigilance cell has been formed by the Government with the Additional Registrar  of Chits as its head with the objective of detecting unauthorised chits and other irregularities. The other members of the cell are the Personal Assistant (Chits) to Inspector General of Registration, Chit Inspectors of Chennai – North, South and Central. Effective steps  have been initiated in the recent months to check bogus firms conducting chits and to take necessary action on complaints regarding illegal and unauthorised chits.  A 100% verification of all the running chits is being undertaken.  Steps have also been taken to display the list of companies in which foremen were convicted for offences, in the notice boards of all Collectorates, Revenue Divisional and Taluk Offices, Local Bodies, etc, besides all the Registration department offices to caution the public.

c) The Tamil Nadu Chit Corporation

Following the winding up of the Tamil Nadu Chit Corporation and the consequent discharging of its staff in a phased manner, the Corporation has to function with minimum  staff till collection of arrears and also for the completion of other pending works.  The amount of arrears to be collected as on 28-2-2002 is Rs.19.08 lakhs.  221 cases are pending before the City Civil Court, Chennai for execution and 206 cases have to be filed for execution.

11. INDIAN   PARTNERSHIP  ACT, 1932

Under this Act, all District Registrars are functioning as Registrars  of firms . A firm can be registered by filing a statement in Form-I and  any changes in the constitution of the firm should also be filed under this Act. The Registrar shall file the statement after making necessary entries in the Register of Firms. To get information regarding the functioning of a firm and to oversee the benefits availed by them, the Tamil Nadu Partnership (Registration of Firms) Rules, 1932 has been amended making it compulsory for the firm to file every year declarations of satisfactory functioning. A proposal to amend the Act  requiring  firms to file declarations of  satisfactory functioning compulsorily every year is under examination.          There are  3,62,020  Firms registered as on 31-1-2002 under this Act.

12. MARRIAGE REGISTRATION

i)   Hindu Marriages Act, 1955

Registration of Marriages between Hindus solemnised already is done under Hindu Marriages Act . Extract of  such marriage registrations are being given to the public.  All Sub Registrars  are  marriage registrars under this Act.

ii)  Special Marriages Act, 1954

Marriages of any form are registered under this Act. 

iii)   Indian Christian Marriages Act,  1872.

Marriages of Indian Christians are solemnised by  licencees under the Act  and by priests. Extract of  such solemnisation under this Act are given at the office of the Inspector General of Registration,  Chennai-28.

13.COMPUTERISATION 

In keeping with the aim of this Government to improve the quality of services rendered to the public, comprehensive computerisation of the Department is already under implementation.  By the first quarter of 2002-2003, 350 offices would have been computerised, out of a total of 650 ( 600 Sub Registrars' offices and 50 District Registrars' offices).  The remaining 300 offices will be computerised in a time bound manner.  In coordination with the NIC , Information Technology is being utilised to ensure quick and transparent service, simplification of process, elimination of middlemen, and reduction of human intervention.  With a view to making the Department people friendly, Website http://registration.tn.nic.in  has been created providing all details of services rendered by this department, the fees to be paid, guideline values,  standardised forms, model draft deeds and mail box facility for proper reply and queries.

  N. Thalavai Sundaram
      Minister For Revenue