Sections 69 and 74 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.
Section 74 lets the State Government make rules on the supply and sale of stamps and stamped papers, on who alone may sell them, and on the duties and remuneration of those sellers. Section 69 makes it an offence for an appointed seller to disobey those rules, and for anyone who is not appointed to sell or offer for sale a stamp, apart from the small adhesive stamps the section names.
Under section 74 the State Government may regulate the supply and sale of stamps and stamped papers, the persons by whom alone sale is to be conducted, and their duties and remuneration; the rules may not restrict the sale of the smallest adhesive stamps. Under section 69, an appointed seller who disobeys a rule made under section 74, and a person who is not appointed but sells or offers for sale a stamp, is punishable with imprisonment up to six months, or fine up to five hundred rupees, or both. The vendor rules themselves are not in the text consulted.
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 the sale of stamps is regulated by rules of the State Government; this article explains the central Act only.
How the two sections work together
Section 74 is in Chapter VIII (supplemental) and is a rule-making power. Section 69 is in Chapter VII (criminal offences) and is the penalty for breaching what section 74 allows the State to lay down. They are written in that order of cause and effect: the State may make rules; breaking those rules, or selling without being appointed, is punishable. The Act does not itself list the people who may sell stamps or say how they are appointed. That is left to the rules. A business that buys or resells stamp paper in volume may want a view on its own position through our legal consultation service before it acts.
Section 74: what the State Government may make rules about
The section is headed "Powers to make rules relating to sale of stamps". The State Government may make rules for regulating:
| Clause | Subject of the rules |
|---|---|
| (a) | the supply and sale of stamps and stamped papers |
| (b) | the persons by whom alone such sale is to be conducted |
| (c) | the duties and remuneration of such persons |
The words "by whom alone" matter. They allow the State to confine sale to appointed persons, and that is the premise on which section 69(b) punishes anyone else.
The proviso. Rules under section 74 "shall not restrict the sale of" the smallest adhesive stamps. The proviso names them as ten naye paise or five naye paise stamps; the copy prints the words as "ten nayepaise or five nayapaise" and the footnote shows that they were substituted by Act 19 of 1958, s. 10, for "one anna or half an anna". We quote the amounts as printed and do not convert them.
Printing slips. In clause (a) the copy reads "stamps an stamped papers" for "stamps and stamped papers". The spelling of "naye paise" differs between sections 69 and 74. We flag them and do not correct the text.
What is not in the text. The copy consulted contains no State rules on the supply and sale of stamps. It does not say how a vendor is appointed, what remuneration is paid, or what discount or commission applies. We therefore state none of it. The State where the stamps are bought is the place to check, and our article on how stamp duty is paid and shown on the instrument (section 10) explains the neighbouring rule-making power.
Section 69: the offence
The section is headed "Penalty for breach of rule relating to sale of stamps and for unauthorised sale". It has two limbs that share one punishment.
Clause (a). Any person appointed to sell stamps who disobeys any rule made under section 74. The person here is someone who is already appointed. The offence is the disobedience of a rule, whatever the rule says.
Clause (b). Any person not so appointed who sells or offers for sale any stamp, other than a ten naye paise or five naye paise adhesive stamp. The words "or offers for sale" mean that an actual sale is not needed; an offer is enough. The exclusion lines up with the proviso to section 74, which stops the State from restricting the sale of those small adhesive stamps.
The punishment. Imprisonment for a term which may extend to six months, or a fine which may extend to five hundred rupees, or both. As with the other fines in Chapter VII, the amounts are ceilings, and they are the amounts in the central text.
A different offence from using the wrong stamp
Section 69 is about the sale of stamps, not their use. Using the wrong stamp, or not cancelling an adhesive stamp, is a different matter. Our article on sections 11 and 12 on adhesive stamps and how to cancel them explains the use side, and our article on sections 63 and 64 covers the penalties for not cancelling stamps and for not stating the true consideration.
Who is affected
- Appointed sellers. They are bound by the State's rules under section 74, and a breach of any rule is within section 69(a). Reading the rules of the State that appointed them is therefore a practical need.
- Persons not appointed. Section 69(b) is directed at someone who sells or offers for sale a stamp without appointment. A business that resells stamp paper or adhesive stamps, other than the two small adhesive stamps named, should find out whether the State requires an appointment.
- Buyers. The sections do not punish a buyer. Section 74 and section 69 are written around the seller. A buyer's concern is that the stamp he uses must be the proper one for the instrument, which is a matter dealt with under other sections and the State's own law.
An example with invented names
Suhana Stationers, a shop, has not been appointed under the rules of its State but keeps a stock of stamp papers and offers them to customers who ask. Section 69(b) is about exactly this: a person not appointed who sells or offers for sale a stamp. Whether the shop is within the exception depends on the denomination, and the exception in the central text is limited to the ten naye paise or five naye paise adhesive stamp.
Now take Mahesh, a vendor appointed by the State, who sells stamp papers at a rate the State's rules do not allow. He is within section 69(a) if what he did amounts to disobeying a rule made under section 74. What the rule says is not in the central text, so the answer depends on the State rules.
Need help with stamping questions?
If you are unsure whether a document has been stamped with papers bought from the right source, or you want an agreement or deed checked against the stamping rules of the State where it will be executed, our team can help through our legal consultation service. We read the paper first and then tell you what, if anything, has to be done.
Key takeaways
- Section 74 lets the State Government regulate the supply and sale of stamps and stamped papers, the persons who alone may sell, and their duties and remuneration.
- The rules may not restrict the sale of the ten naye paise or five naye paise adhesive stamps.
- Section 69(a) punishes an appointed seller who disobeys such a rule; section 69(b) punishes a person not appointed who sells or offers for sale a stamp.
- Punishment: imprisonment up to six months, or fine up to five hundred rupees, or both.
- The vendor rules are not in the text consulted; check the State's own rules.
Read next
- Sections 66-68: penalties on insurance policies, bills in sets and post-dated bills
- Sections 70-72: sanction for prosecution, compounding and place of trial
- Section 54 of the Indian Stamp Act, 1899: allowance for stamps not required for use
- Modes of stamping: adhesive, impressed and e-stamp
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.