Property prices may shoot up in Delhi with the implementation of the Supreme Court’s order that will make all realty sales through transfer of general power of attorney (GPA) null and void with retrospective effect from October last year.
New Delhi: Property prices may shoot up in Delhi with the implementation of the Supreme Court’s order that will make all realty sales through transfer of general power of attorney (GPA) null and void with retrospective effect from October last year.
The order passed by Supreme Court on October 2011 states that no sales deed will be registered if it is through transfer on GPA. This means that transactions carried out since October on GPA transfers will have to be registered afresh with complete documents.
As reported by a leading daily on Friday, the Revenue Department has passed an order on April 27 which directs all 13 sub-registrar offices, DDA and NDMC to implement the apex court’s order.
Realty experts have reportedly said that the order will reduce the number of saleable properties in the capital, which will hike the value of properties on freehold land.
Earlier in October 2011, the Supreme Court had ruled that sale transactions carried in the name of general power of attorney will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.
A three-judge bench of justices R V Raveendran, A K Patnaik and H L Gokhale had also asked the states to reduce stamp duty rates to prevent undervaluation of property and stashing of black money by vested interests.
The apex court had said that high stamp rates has led to rampant abuse of the general power of attorney (GPA), sale agreements (SA) and Wills, resulting in huge loss of money to the exchequer.
"Transactions of the nature of GPA sales or SA/GPA/WILL transfers do not convey title and do not amount to transfer nor can they be recognised or valid mode of transfer of immovable property, “ it said.
The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. "Such transactions cannot be relied upon or made the basis for mutations in municipal or revenue records," Justice Raveendran, writing the judgement, said.