GENERAL POWER OF ATTORNEY – PROPERTY DEALING – SUPREME COURT OBSERVATION – TAKE UTMOST CARE!


The Supreme Court observation on the sale of properties on General Power of Attorney:

The SC has clarified that it was only stating the well-settled legal position in this connection and not laying down a new law, the order was necessary because a good proportion of property sales have been affected through the GPA route of late.  The Supreme Court’s ruling on Wednesday that transfer through general power of attorney (GPA) cannot give ownership title to the buyer will address a long-pending anomaly as far as property transactions in this country are concerned.

This has led to evasion of stamp duty and registration charges, causing losses to the public exchequer. It also has a great role to play in the circulation of black money in the real estate sector, which in turn has become a major avenue for investment and creation of unaccounted wealth.

The transfer of property through the GPA route has often seen genuine buyers being cheated since the same property can be sold to several parties, resulting in litigation, and, sometimes, crime.

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6 thoughts on “GENERAL POWER OF ATTORNEY – PROPERTY DEALING – SUPREME COURT OBSERVATION – TAKE UTMOST CARE!

  1. transfer through general power of attorney (GPA) cannot give ownership title to the buyer””

    I wish to clarify the above,

    1. is it any transfer of property (by sale deed) through GPA can not give ownership title to the buyer(THIS MEANS THAT ATTORNEY CAN NOT CONVEY THE SALE DEED) OR

    2. the General Power of Attorney holder can not claim as owner (THIS MEANS THE GPA holder CAN REGISTER THE SALE DEED IN FAVOUR OF THIRD PARTY)

    WHICH IS CORRECT. KINDLY INFORM ME SIR,

  2. May be, the perpetrators of the ill-conceived idea of ‘GAP sales’and its perpetuators over decades have tried to make out a case as if there were lcacuna in the law.

    Having regard to the three governing enactments , – the TPA,IRA and ISA, which have been in force for everal dacades, – rather, all of them are over a century old, however, the SC’s has unequivocally clamped down that idea and clinched the dispute, the decision found summed up in the following observations:

    “It is thus clear that a transfer of immoveable property by way of sale can
    only be by a deed of conveyance (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 immoveable property can be transferred.”

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