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.