Legal Question in Real Estate Law in India

Under Section 269 of Income Tax Act, 1961 , compulsory purchase � can be made by the Central Government on ground that there was undervaluation of property . Is there any law, under which compulsory purchase � can be made by the creditor/decree holder on the ground that there was undervaluation of property and transaction is made only to avoid the payment to the creditor/decree holder by paying small stamp duty on registered sale deed. The creditor/decree holder is ready even to pay say 50 % more value than written in sale deed. The transaction should be avoided on the ground of inadequate consideration and the transaction is only a sham transaction and immovable property should be got sold to the creditor/decree holder on much more sale value than written in sale deed between the judgement debtor and purchaser/transfree.


Asked on 1/17/12, 12:21 pm

1 Answer from Attorneys
www.lawconcern.com S.Seshadri www.lawconcern.com

In any statutory auction sale as under IT Act, Insolvency Laws, SAEFESI, DRT or even Court Sales, the price fixation can be questioned by the prior owner of the property if the price amount is inadequate.

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Answered on 1/17/12, 10:52 pm


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