Madras High Court Overturns ₹12.43 Cr Stamp Duty Demand on PVP Ventures, Citing Lack of Legal Procedure

Mumbai, 11 July 2025: In a major relief for PVP Ventures Limited, the Hon’ble Madras High Court has quashed a ₹12.43 crore demand raised by the Department of Registration, Government of Tamil Nadu. The demand was set aside on the grounds of procedural lapses, with the court observing that no proceedings had been initiated under the applicable provisions of the Indian Stamp Act, 1899.

Court Rejects Demand Due to Absence of Legal Proceedings

Delivering its verdict on June 19, 2025, Hon’ble Justice Mohammed Shaffiq ruled in favour of PVP Ventures, declaring the department’s notice dated May 23, 2025 (Na.Ka.No.180/2025) as premature and unsustainable. The court pointed out that the demand was made without invoking Section 33A or 47A of the Indian Stamp Act, which are essential prerequisites for such a claim.

The judgment stated that while the department may initiate proceedings under these sections, it must first provide the company an opportunity to be heard.

Excerpt from the judgment (Page 5):

“The impugned demand is premature… the respondent is at liberty to issue notice under Section 33A or Section 47A and thereafter proceed in accordance with law.”

Background: Mortgage of Ekanta Tower Project Triggered the Dispute

The dispute stems from the registration of a simple mortgage deed by PVP Ventures for a segment of its Ekanta Tower real estate project. The deed, executed on January 22, 2024 (Doc No. 264/2024), covered 22,750 sq. ft. of built-up area and 8,085 sq. ft. of undivided share of land. Stamp duty and registration charges were duly paid at the time.

However, based on a subsequent audit report, the Sub Registrar of Purasawakkam demanded an additional ₹12.43 crore, alleging underpayment. PVP Ventures challenged the demand, arguing it was issued without following the legally mandated process under the Stamp Act.

High Court Agrees Demand Was Made Without Proper Authority

The court concurred with PVP Ventures’ contention that the Sub Registrar acted prematurely. It ruled that no unilateral demand could be enforced unless proceedings under Sections 33A or 47A were first initiated and the party concerned was given a chance to present its case.

The court’s ruling ensures that any reassessment of stamp duty must follow the appropriate legal channels, thereby reinforcing the procedural safeguards under the Indian Stamp Act.

Company Welcomes Judgment, Highlights Judicial Support

Confirming the legal win, PVP Ventures’ Chairman & Managing Director, Prasad V Potluri, acknowledged the development through an exchange filing dated July 11, 2025. He stated:

“The Hon’ble High Court… has set aside the demand notice issued by the Department of Registration, Government of Tamil Nadu.”

About PVP Ventures: Leading Player in Southern India’s Realty Sector

Listed on both BSE and NSE, PVP Ventures Limited is involved in real estate development and asset management. The company has a portfolio of residential and commercial projects across southern India and has undergone multiple corporate restructuring initiatives in recent years.

This court verdict is expected to further consolidate investor confidence in the company’s legal and operational standing.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/325d05cb-f5b2-4b65-a8fa-e5e85d1cf323.pdf

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