NEW DELHI: Spelling relief
for thousands of property owners in the city, the Delhi high court has struck
down a controversial circular of the state government that restricted property
transaction via general power of attorney.
Justice Rajiv Shakdher
faulted the state government for wrong interpretation of a landmark 2011
Supreme Court on the issue of power of attorney (GPA), pointing out the apex
court never issued a blanket ban on registration by taking recourse to a GPA.
The circular had created massive confusion among property owners who had to
regularize their property through a fresh sale deed and pay stamp duty.
"The Supreme Court
has not said that in no case a conveyance can be registered by taking recourse
to a GPA. As long as the transaction is genuine, the same will have to be
registered by the Sub-Registrar. There is distinctly a specific reference to
the fact that, a person may enter into a development agreement with a land
developer or builder for development of a parcel of land or for construction of
apartments in a building, and for this purpose a power of attorney to execute
sale agreements, can be executed," the court observed.
In October 2011, the SC had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Last year, the state government came out with a circular banning sale of property on the basis of a GPA, a will, and agreement to sell, collectively or separately in respect of an immovable property. "No transfer of property will take place until a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ Sub-Registrar," the circular stated, with the government claiming it issued it in "strict adherence to SC ruling" on property transactions.
In October 2011, the SC had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Last year, the state government came out with a circular banning sale of property on the basis of a GPA, a will, and agreement to sell, collectively or separately in respect of an immovable property. "No transfer of property will take place until a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ Sub-Registrar," the circular stated, with the government claiming it issued it in "strict adherence to SC ruling" on property transactions.
The government had
clarified that property transactions involving GPA, done after the SC order of
October 2011 would not be null and void and property holders can
"regularize" them by paying the difference in the stamp duty.
HC's order came on the
petition of a builder who had entered into a property transaction in south
Delhi by way of a GPA. The builder highlighted how the government's circular
failed to make a distinction between registration of a genuine GPA and those
done to evade stamp duty. Source:
Posts
