New Delhi: The Supreme Court on Wednesday 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 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 said high stamp rates has led to rampant
abuse of the general powr 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.
"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.
PTI
