Delhi government lifts ban on property

transaction through GPA

PTI Jul 22, 2013, 10.37PM IST

Tags:

 Supreme Court|
 Sheila Dikshit|
 Property transactions|
 Najeeb Jung|
 GPA|
 Delhi High Court|
 Delhi Government

(The Revenue Department…)

NEW DELHI: Delhi government today lifted the ban on registration of property transactions
involving general power of attorney (GPA) which is expected to provide relief to lakhs of
residents living in group housing societies and unauthorised colonies.

The Revenue Department issued a circular allowing registration of all GPA-based property
transactions in the city with immediate effect.
As per the circular, property transaction through GPA will be considered "legal" but it will not
be considered as transfers of title for mutation of property.

The order said transfer of property through general power of attorney and special power of
attorney (SPA) by any registered property owner will be allowed in favour of "their spouse, son,
daughter, brother, sister or any other relative or person of his trust to manage his property or
empowering him to execute any further deed of transfer including conveyance, sale and gift
deed".

The clause that property transaction through GPA and SPA will be allowed in favour of the
owner's spouse, son, daughter, brother, sister or any other relative has been newly introduced.

When asked whether there will be restrictions on transfer of property through GPA to anybody
apart from the relatives of the property owner, officials in Revenue department said the an owner
of a property can transfer it to anybody whom he "trusts".

"Immovable property can be legally and lawfully transfered only by a registered deed like sale
and conveyance deed. Execution of GPA/SPA/ Will etc in respect of immovable properties, do
not convey any title, and thus, are not legally recognised valid modes of transfer," the circular,
signed by Divisional Commissioner Dharam Pal said.

Chief Minister Sheila Dikshit last week had said that government decided to reverse the
restriction imposed by it last year in transaction of properties through GPA considering
difficulties faced by people of the city.

Following a Supreme Court order on property transactions, Delhi government in April last year
had put a stop on property transactions through GPA.

The Supreme Court had on October 12, 2011 ruled that sale transactions carried in the name of
GPA will have no legal sanctity and immovable property can be sold or transferred only through
registered deeds.

The Delhi High Court on May 5 had quashed the Delhi government order banning property sale
through GPA.

Following the Delhi government order, volume of property transaction in the city had come
down drastically as selling of leasehold properties through GPA transfers was a convenient way
of such transactions.

Transaction through GPA was common for properties not having a clear title.

Officials in Revenue department had said government's revenue collection had also come down
following the ban on property transactions through GPA.

They said around 20 of property transactions were done through GPA transfers before the ban on
it was imposed last year.
The lifting of the ban on GPA-based transactions will help sell and purchase of properties in
unauthorised colonies where there is no clear title.

The city government had regularised 895 unauthorised colonies in September last year and the
decision to lift transaction through GPA will allow property sell and purchase in those
settlements, said officials.

The government circular came after Lt Governor Najeeb Jung cleared the file in this regard.

Registration of property sold through GPA

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The Delhi Government has decided to allow registration of properties through General Power of
Attorney from next week, Chief Minister Sheila Dikshit said while inaugurating the seventh e-
Sub Registrar office at Nangloi here on Friday.

Stating that the registration of properties through GPA would address a long-standing demand of
the people, Ms. Dikshit the Delhi Government is also striving hard to streamline the registration
process. She said the new system envisages a process in which each applicant arrives at the e-sub
registrar office with a pre-fixed appointment. The appointment can be taken online by accessing
the website of the Revenue Department.

She also said that her government has been concerned about difficulties faced by residents of
resettlement colonies and unauthorised colonies and declared that residents of 51 colonies will
get ownership rights by August and will thus become proud owners of their own houses.

Delhi Revenue Minister Arvinder Singh Lovely said the Delhi Government’s Urban
Development Department has strived hard to accelerate the process of regularisation of
unauthorised colonies in the Capital and is keen to provide all basic amenities in these colonies at
the earliest. He also stated that the process would have picked up the desired momentum had the
municipal corporations finalised the layout of the colonies which have been declared as
regularised.

Mr. Singh said the Delhi Government has been commissioning people-friendly e-SR offices in
order to provide hassle free and fast registration process. All land records, he said, will be
available at the click of a mouse.
The first such office was opened at Mehruali, followed by Rohini, Nand Nagri, Kapashera, Basai
Darapur and Geeta Colony.