Sections 70-72 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 70, 71 and 72 close Chapter VII. They do not create any offence. They say how an offence under the Act is to be started (only with the sanction of the Collector or an authorised officer), who may stay or compound it (the Chief Controlling Revenue-authority or an officer it authorises), which Magistrate may try it, and in which district the trial may be held.
No prosecution for an offence under the Act (or under any Act it repealed) can be instituted without the sanction of the Collector or an officer authorised by the State Government generally, or by the Collector specially. The Chief Controlling Revenue-authority, or an officer it authorises, may stay the prosecution or compound the offence, and the composition amount is recovered as section 48 provides. Section 71 limits who may try the offence, and section 72 allows the trial in the district where the instrument is found or where it might be tried under the Code of Criminal Procedure for the time being in force.
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and procedure is administered through the State's officers; this article explains the central Act only.
Section 70(1): no prosecution without sanction
Section 70 is headed "Institution and conduct of prosecutions". Its first sub-section says that "no prosecution in respect of any offence punishable under this Act or any Act hereby repealed, shall be instituted without the sanction" of one of two kinds of authority:
- the Collector, or
- such other officer as the State Government generally, or the Collector specially, authorises in that behalf.
Three points come out of the wording. First, the rule covers an offence under this Act and also under any Act the 1899 Act repealed. Second, it speaks of "instituting" a prosecution, so the sanction has to exist at the start, not afterwards. Third, it is the State Government that can authorise other officers generally, while the Collector can authorise an officer for a particular case.
The Act does not say in what form sanction is to be given, and no rule on it is in the text consulted. The reader should look to the State's rules, and a person who has received a notice can take help through our legal dispute resolution service.
Section 70(2): stay and compounding
Sub-section (2) gives a separate power to a different authority. The Chief Controlling Revenue-authority, "or any officer generally or specially authorized by it in this behalf", may:
- stay any such prosecution, or
- compound any such offence.
To compound means to settle the offence on payment of an amount instead of going on with the prosecution. The Act does not set the amount; nor does the copy consulted contain any rule that does. It is left to the authority exercising the power. The words "any such prosecution" and "any such offence" refer back to sub-section (1), so the power extends to offences under this Act and under the repealed Acts.
Section 76A of the Act lets the State Government delegate certain powers to the Chief Controlling Revenue-authority, and lets the Chief Controlling Revenue-authority delegate some of its own powers (including those under section 70(2)) to a subordinate Revenue-authority named in a notification. That is covered in our article on sections 76A, 77, 77A and 78. No notification is in the text consulted.
For the difference between compounding and adjudication in general terms, see our guide on compounding versus adjudication of offences.
Section 70(3): recovering the composition
"The amount of any such composition shall be recoverable in the manner provided by section 48." Section 48 deals with recovery of duties and penalties by distress and sale or as arrears of land revenue. Our article on sections 47 and 48 explains the mechanism. The point to notice here is that a composition under section 70(2) is treated as a recoverable sum in the same manner as a duty or penalty.
Section 71: which Magistrate may try
Section 71, "Jurisdiction of Magistrate", says that no Magistrate other than a Presidency Magistrate or a Magistrate whose powers are not less than those of a Magistrate of the second class shall try any offence under the Act. The text uses the grades of Magistrate and the idea of a Presidency Magistrate as they were in the older criminal procedure. These expressions are quoted as printed. The reader should check the current law for the corresponding provision on the classes of Magistrate and on the courts that now try such offences.
Section 72: place of trial
Section 72 says that "every such offence committed in respect of any instrument may be tried in any district or presidency-town in which such instrument is found, as well as in any district or presidency-town in which such offence might be tried under the Code of Criminal Procedure for the time being in force."
So there are two places where the trial may be held:
| Place | Basis in the text |
|---|---|
| the district or presidency-town where the instrument is found | section 72, first limb |
| any district or presidency-town where the offence might be tried under the Code of Criminal Procedure for the time being in force | section 72, second limb |
The phrase "for the time being in force" refers to whatever procedure code is in force. Since "presidency-town" is also an old expression, the reader should check the current law for the corresponding provision. This article names no replacement Code.
Putting the three sections together
Take an invented case. Ravi Textiles executes an instrument which is not duly stamped, and the Collector thinks an offence under the Act (for example under section 62) is made out. Under section 70(1) the Collector, or an officer authorised for the purpose, must sanction any prosecution before it is started. Under section 70(2) the Chief Controlling Revenue-authority, or an officer it authorises, may stay the prosecution or compound the offence. If the offence is compounded, the amount is recoverable as section 48 provides. If the matter goes to trial, section 71 says what class of Magistrate is competent, and section 72 says the trial may be in the district where the instrument is found, which might be a different district from the one where Ravi Textiles has its office.
Neither penalty nor duty is decided by these sections. The offences are in sections 62 to 69. See our article on section 62 for the offence of executing an instrument that is not duly stamped.
What the text does not say
The copy consulted does not say how long a sanction lasts, whether a sanction can be withdrawn, what a stay means for a pending case, or how the composition amount is fixed. These are left to officers and to the State's rules, which are not in the text. We state none of them. Anyone facing an actual notice should read the official text and the State's rules, and take advice on the current criminal procedure.
Need help with a stamp-duty prosecution or notice?
If a notice or a prosecution touches a document your business has signed, our team can read the papers with you and set out the options under our legal dispute resolution service. Where the matter is still at the stage of a defect that can be cured by paying duty and penalty, it is often a safer course to deal with it before an offence is alleged.
Key takeaways
- A prosecution under the Act cannot be instituted without the sanction of the Collector or an officer authorised under section 70(1).
- The Chief Controlling Revenue-authority, or an officer it authorises, may stay a prosecution or compound the offence.
- A composition amount is recoverable in the manner section 48 provides.
- Section 71 sets the class of Magistrate; section 72 sets where the trial may be held. Both use older criminal-procedure expressions, so check the current law.
- The amount of a composition and the form of sanction are not in the text consulted.
Read next
- Section 62 of the Indian Stamp Act, 1899: penalty for executing an instrument not duly stamped
- Sections 66-68: penalties on insurance policies, bills in sets and post-dated bills
- Sections 69 and 74: sale of stamps, rules and the penalty for unauthorised sale
- Penalty for insufficient stamp duty
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.