No property sale on power of attorney: Supreme Court : North News - Ind...

http://indiatoday.intoday.in/story/property-sale-through-gpa-not-valid/1/1...

INDIA TODAY GROUP:

InToday | India Today | Aaj Tak | Headlines Today | Business Today | Men's Health | Wonder Woman | Cosmopolitan | Oye! 104.8FM

Updated 15:59 IST | Sat, May 5, 2012

IPL 5 SACHIN TENDULKAR

SATYAJIT RAY MAMATA BANERJEE INDIA TODAY CONCLAVE

In Association With

HOME NEWS INDIA VIDEOS PHOTOS MOVIES SPORT

LIFESTYLE BLOGS SUPPLEMENTS MAGAZINE CLASSIFIEDS SHOPPING

INDIA EAST | WEST | NORTH | SOUTH | NORTHEAST

India Today / India / North / Story Courtesy: MAIL TODAY
GYANANT SINGH NEW DELHI, OCTOBER 13, 2011 | UPDATED 12:11 IST

STAY CONNECTED WITH US ON

No property sale on power of attorney: Supreme Court

The verdict won't affect validity of sale deals and powers of attorney in genuine transaction.

RELATEDS Home sales slump to three-year lows

MULTIMEDIA

VIDEOS

PHOTOS

Mullaperiyar dam: EC report sides with TN

6 retweet

Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer. In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property. A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds. "A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA. The judgment delivered on Wednesday would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people. Navin Raheja, chairman and managing director of Raheja Developers said, "The court's decision will help to curb the circulation of black money to some extent in the real estate sector where titles are manipulated. Besides, many property transactions where prices are rounded off will be affected. However, overall there won't be any significant impact on normal property sales." The apex court said there can be no mutation of property in municipal and revenue records on the basis of such documents. The bench, however, clarified that its order should not be a ground for disturbing mutations already effected by the Delhi Development Authority (DDA) or any other authority. But, there is little relief for thousands of people who hold property without mutation as GPA sales can only be treated as existing sale agreements. An application of the order with prospective effect would have protected their interest. The court, though, stressed that it had merely reiterated the well- settled legal position that such transactions cannot be treated as completed transfers. The court could not make the order applicable with prospective effect as it had not laid down any new law. However, it said that those who had already bought property through GPA before its judgment could use the documents to apply for regularisation of allotments and leases by development authorities. "Nothing prevents affected parties from getting registered deeds of conveyance to complete their title. The said transactions may also be used to obtain specific performance or to defend possession under section 53A of TP (Transfer of Property) Act," the court said. In order to ensure that GPA continues to serve its purpose, the court said its judgment will not affect the validity of sale agreements and powers of attorney executed in genuine transactions. "For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance." The court further said that a person can enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings. In that connection he can execute an agreement of sale and grant a power of attorney that will allow the developer to further sell the property to prospective purchasers. While hearing a matter on the subject, the court had decided to clarify the law on the issue as such transfers had not only led to evasion of stamp duty and registration charges but had also provided scope for investing black money in real estate. Besides, such transfers were giving nightmares to bona fide purchasers as the same property could be sold to several people in the absence of verification or

Support for Pranab Mukherjee as Prez grows

DMK backs Pranab Mukherjee as President

Mamata says NCTC is not acceptable

MOST POPULAR

VIDEOS

STORIES

Reviews Movie review: Jannat 2

Comments (1)

Cover Story Breast surgery becomes the new rage in India

Comments (2)

Celebrities John Abraham set to marry banker friend Priya Runchal soon
(Be the first to comment)

World Gideon Sundback's zipper on a Google doodle

(Be the first to comment)

North Richie rich Nirmal Baba under scanner

Comments (6)

ON THE STANDS

Issue dated: May 14, 2012

Highlights Cover story: Blood Politics On Siachen Letter from the Editor-in-Chief Byword by M J Akbar: The whiff of 1969 The Big Story: Love and Murder in Bhopal

SUBSCRIBE NOW
Print Edition, Digital Edition Previous Issue | Archives

Alert

This site has been blocked by the network adm

URL: http://www.facebook.com/plugins/likebox.php

Block reason: Forbidden Category "Social Netwo If you believe the below web site is rated incorrectly

1 of 2

5/5/2012 4:13 PM

No property sale on power of attorney: Supreme Court : North News - Ind...

http://indiatoday.intoday.in/story/property-sale-through-gpa-not-valid/1/1...

certification of title. A proper verification of ownership was possible only if all property were transferred through registered sale deeds. Noting that such transactions were now not just limited to Delhi but had spread to neighbouring areas, the court had sought the views of the Centre and the states of Delhi, Haryana, Punjab and Uttar Pradesh. There was a near unanimity that such transactions should be discouraged as it caused loss of revenue and increased litigation due to defective titles. Going into the legality of such transfers, the court said any contract of sale which was not a registered sale deed would fall short of the requirements of the relevant provisions of the Transfer of Property Act and could not confer any title. The court said a transfer of property by way of sale could only be by a sale deed. "In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred," the bench said. Do you like this story? 83 12
CLICK HERE FOR MORE NEWS
ADVERTISEMENT Post comments on this story Comment:

TOP PICKS Sofia Hayat goes topless on twitter

Name : Place : E-mail : Enter the Code Shown:

Read Surfers' Comments

Posted by: m m | December 15, 2011

Power of attorney: Supreme Court

Post Your Comment

Posted by: PRADIP PAUL Howrah (WB) | October 17, 2011

As decided and order by the Hon'ble Supreme Court in my opinion it is correct and right. Illegal transaction of sale of property and handling of illegal money both will be stopeed and controlled. However, it is found that in many important cases SC has failed to take right action as early as possible by force of government and political influence. SC has to do on its own perspective. Sc may interfere with other socio economic and human being issue.In democratic process SC has lot of duties to keep peace and harmony and implemetnation of various human being policies of government, PPP & NGO etc.
Post Your Comment

Posted by: pummi new delhi | October 14, 2011

Can a lawyer say that I have land on GPA in aya nagar(new delhi) 3 months ago what will happen to that?
Post Your Comment

Posted by: Nikunj Mumbai | October 14, 2011

What about Mumbai where all the Black Money is hidden...

Post Your Comment

Posted by: KULDEEP GHAZIABAD | October 13, 2011

GOOD MOOVE.WHT WILL HAPPEN TO THOSE WHO HAVE PURHASED LAND/FLAT ON POA IN colonies that are not REGISTERED with any authority?
Post Your Comment

Disclaimer: Please note that all your comments, feedback and suggestions are published on our websites unless found libellous, inciteful, defamatory, vulgar, pornographic and abusive. We also like to specify that the comments are views of the surfers alone and do not necessarily reflect those of the India Today Group.

TOP STORIES FROM NORTH Anna Hazare is my spiritual friend, says Baba Ramdev NCTC meet: Who said what Singhvi's long leave

TOP STORIES NCTC not acceptable to us, will increase trust deficit: Mamata No objection to Pranab's candidature for presidency: DMK NCTC: Home Ministry wants to belittle states, says Jaya

HOME

NEWS

INDIA

VIDEOS

PHOTOS

MOVIES

SPORT

LIFESTYLE

BLOGS

SUPPLEMENTS

MAGAZINE

GAMES

CLASSIFIEDS

SHOPPING

LOCAL SEARCH

Web: InToday Publications: India Today | India Today - Hindi | Business Today | Cosmopolitan | Men's Health | Wonder Woman | Money Today | Prevention | Reader's Digest | Good Housekeeping | Travel Plus | Golf Digest India | Design Today | Time | Harvard Business Review | Gadgets & Gizmos Television: Aaj Tak | Headlines Today Radio: Oye! 104.8FM Education: Vasant Valley | Learn Today Online Shopping: Bag It Today | India Today Diaries Events: India Today Conclave | India Today Woman's Summit | India Today Youth Summit | State Of The States Conclave | India Today Education Summit Music: Music Today Printing: Thomson Press Welfare: Care Today Classifieds: Directories Today Useful Links : Partners | Press Releases Syndications: India Today Images ABOUT US CONTACT US ADVERTISE WITH US SUBSCRIPTION WE CARE PRIVACY POLICY

Copyright 2012 Living Media India Limited. For reprint rights: Syndications Today.

2 of 2

5/5/2012 4:13 PM