Dear suchdevs ji
I waited for the party to take me to the bank branch to put up the case not to insist on registering for a higher value. But the party somehow did not want a discussion at all and was keen to get the loan sanctioned faster. However I am putting my views on this subject for your view and valuable comments.
We have to understand reasons behind the policy of the Bank for this decision. By this advice bank feels there will not be any audit or vigilance query on the credit value extended. Bank may also feel customers would avoid excess valuation to save unnecessary stamp charges. But this may not deter the party from slightly manipulating the value to thier advantage. Let us discuss why bank should not recommend any value at all for registration purpose.
1. Fixing registration value is the prerogative of registrar and not bank.
2. This is linked to revenue of the Govt and value deficit or excess to be decided by authorized official. So bank recommendation on registration value is automatically becomes a breach on the system.
3. In case of undervaluation bank decision will not hold water and Registrar will refuse to act and the title transfer not possible. This will cause irreparable delay / loss to customer.
4. Valuation varies depending on the purpose but registrar decides value based on GLR fixed by revenue department. This conflict between values registrar decision is final and enforceable.
5. On some occasions where land acquisition by Govt is expected parties who have stake would registrar documents on higher value than prevailing in market aiming matching compensation. Such document presented will not be considered by valuer. So bank will be misled by such documents.
6. If a father divides and give a large extent of his property to three of his sons. One as gift deed, other as partition deed and third as sale deed each document will carry different values. Suppose all the three approaches same bank for assistance what value bank will recommend for registration purpose?
Hence bank should never influence parties on documentation value.
Vr. D. Jagannathan