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5h ago

Supreme Court Quashes Jharkhand’s Extra-Verification Rule for Co-Op Stamp Duty Exemption

The court held that a cooperative’s registration certificate is conclusive proof of existence, making the state’s additional recommendation requirement an unlawful burden.

A bench led by Justice PS Narasimha held that the principle that governance should facilitate, rather than burden, citizens’ access to administrative processes. (ANI)
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Overview

  • Delivering the judgment on December 5, a bench of Justices P. S. Narasimha and Atul S. Chandurkar struck down the 2009 directive as ultra vires and unnecessary.
  • The ruling sets aside single-judge and division-bench decisions of the Jharkhand High Court and allows the appeal by Adarsh Sahkari Grih Nirman Swawlamblambi Society Ltd.
  • The February 20, 2009 memo had directed sub-registrars to grant Section 9A stamp-duty exemptions only after a recommendation from the Assistant Registrar of Cooperative Societies.
  • The bench called the added recommendation an irrelevant consideration that contributes no value to transaction integrity and thus amounts to illegality.
  • Citing Section 5(7) of the Jharkhand Self-Supporting Cooperative Societies Act, 1996, the court affirmed a broader principle that executive procedures imposing excessive or redundant demands must be struck down to protect ease of transactions.