law: Indian Stamp Act, 1899 
  8. Bonds, debentures or other securities issued on loans
  
  under Act 11 of 1879 
  (1) Notwithstanding anything in this Act, any local authority
  
  raising a loan under the provisions of the Local Authorities Loan Act, 1879, or
  
  of any other law for the time being in force, by the issue of bonds, debentures
  
  or other securities, shall, in respect of such loan, be chargeable with a duty
  
  of 23[one per centum] on the total amount of the bonds, debentures
  
  or other securities issued by it, and such bonds, debentures or other
  
  securities need not be stamped and shall not be chargeable with any further
  
  duty on renewal, consolidation, sub-division or otherwise.
  (2) The provisions of sub-section (1) exempting certain bonds,
  
  debentures or other securities from being stamped and from being chargeable
  
  with certain further duty shall apply to the bonds, debentures or other
  
  securities of all outstanding loans of the kind mentioned therein, and all such
  
  bonds, debentures or other securities shall be valid, whether the same are
  
  stamped or not:
  PROVIDED  that nothing herein contained shall exempt the
  
  local authority which has issued such bonds, debentures or other securities
  
  from the duty chargeable in respect thereof prior to the twenty-sixth day of March,
  
  1978, when such duty has not already been paid or remitted by order issued by
  
  the Central Government.
  (3) In the case of willful neglect to pay the duty required by
  
  this section, the local authority shall be liable to forfeit to the government
  
  a sum equal to ten per centum upon the amount of duty payable, and a like
  
  penalty for every month after the first month during which the neglect
  
  continues.