Delhi Govt cracks down on 'misuse of powers' of attorney used to transfer property ownership at lower stamp duty
New Delhi, July 8
Delhi Chief Minister Rekha Gupta has taken a "major and stringent" decision to curb revenue loss in the registration of immovable properties, crack down on land mafias and fraud and safeguard government revenue, a release said.
Acting on the Chief Minister's directions, strict guidelines have been issued for detailed scrutiny of property-related documents executed through General Power of Attorney (GPA). "All Sub-Registrars have been directed to ensure strict compliance with these instructions with immediate effect," it added.
CM Rekha Gupta said the government is fully committed to protecting the interests of Delhi's citizens and safeguarding government revenue.
"It has been observed that in several cases, documents are registered merely as a 'GPA' by paying only a nominal stamp duty, even though they contain provisions relating to the sale of property, handing over possession and transfer of ownership rights," it added.
She said this amounts to direct evasion of stamp duty and will no longer be tolerated under any circumstances.
The Chief Minister said that every GPA document presented for registration in Delhi will now undergo detailed scrutiny by the Sub-Registrar.
"During the examination, particular attention will be paid to whether the document mentions any monetary consideration, provides for the handing over of possession of the property, is irrevocable in nature, or grants permanent authority to sell, gift, transfer, or mortgage the property," it added.
The Chief Minister said that GPAs executed in favour of persons other than blood relations, namely parents, spouse, son, daughter, brother or sister, will no longer be registered directly by the Sub-Registrar.
"All such cases will be mandatorily referred to the concerned Collector of Stamps for adjudication to determine the appropriate stamp duty payable," it added.
CM Rekha Gupta said that the Collector of Stamps will be required to pass a reasoned written order on every such reference within 30 days.
"The order will determine whether the document is merely a General Power of Attorney or whether it attracts full stamp duty as applicable to a Conveyance Deed (Sale Deed). In exceptional circumstances, this period may be extended up to a maximum of three months. No such GPA will be registered unless the Collector of Stamps has passed the order and the appropriate stamp duty has been paid," it added.
The Chief Minister further clarified that if any Sub-Registrar registers such a GPA in violation of these rules without referring it to the Collector of Stamps, strict disciplinary action will be initiated against the concerned officer.
The Chief Minister said that to ensure greater transparency and accountability, every Sub-Registrar's office will maintain a separate register for such cases and submit monthly reports.
She has also directed that an online tracking mechanism be developed within one month to monitor all such cases, it added.
CM Rekha Gupta said this initiative will not only safeguard government revenue but also protect ordinary citizens from fraud involving defective documents. She reiterated that transparency and integrity remain the highest priorities of the Delhi Government.
— ANI
Reader Comments
As someone who recently bought a property in Delhi, this is welcome news. The earlier system was too ambiguous and gave room for fraudsters. However, I hope the government also simplifies the process for genuine buyers like us who have to deal with family properties through GPA. Right now it feels like we're being punished for others' mistakes.
This looks like a sensible move to me. In many countries, power of attorney cannot be used to transfer property ownership - you need a proper sale deed. India's been too lax on this, leading to lots of tax evasion and legal disputes. The online tracking system is a great step for transparency.
This is good but I am skeptical about implementation. Will the Collector of Stamps actually pass orders in 30 days? Knowing Delhi government babus, it might take 6 months. Also, what about existing GPAs that were registered before this circular? My family has been using a GPA for our ancestral property since 2010 - will that be affected? 🤔
A much-needed reform. In many Western countries, property transfers via power of attorney are strictly regulated. This move will protect buyers from fraudulent transactions where they pay full price but only get a GPA instead of proper ownership. The disciplinary action threat for Sub-Registrars who violate rules is particularly strong.
Common middle class family here - we've been relying on GPAs for decades because registering proper sale deeds is too expensive with the high stamp duty. While I understand the need to stop misuse, the government should also consider reducing stamp duty rates so
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.