New Delhi: Delhi govt has tightened scrutiny of property registrations executed through general power of attorney (GPA) to curb stamp duty evasion, land fraud and revenue loss from such transactions.Chief minister Rekha Gupta on Wednesday directed sub-registrars to examine whether GPAs involve sale consideration, transfer of possession or confer ownership rights amid reports that in several cases, documents are being registered as GPAs by paying nominal stamp duty, even though they effectively provide for the sale of properties, handing over of their possession and transfer of ownership rights.Govt said such practices amount to stamp duty evasion by misusing legal instruments and will no longer be tolerated. The chief minister office (CMO) said that under new directions, a GPA executed in favour of persons other than close blood relatives of the owner of a property will be mandatorily referred to the collector of stamps, who must determine within 30 days whether the document attracts full stamp duty applicable to a conveyance deed (sale deed).Warning of strict disciplinary action against sub-registrars found violating norms, govt has said an online monitoring system, to be rolled out within a month, will monitor referrals and ensure compliance.A general power of attorney is a legal instrument that allows a person to authorise another person to make broad legal, financial, or property decisions on their behalf. It is commonly used to manage properties or execute transactions, but by itself does not transfer ownership.However, officials said some transactions in the city are being structured as GPAs despite containing clauses relating to sale consideration, transfer of possession and permanent rights over properties. Such documents, officials said, are effectively conveyance deeds and attract substantially higher stamp duty than GPAs.“The sub-registrars have been asked to specifically examine whether a document mentions any monetary consideration, provides for handing over possession of a property, is irrevocable in nature, or grants permanent authority to another person to sell, gift, transfer or mortgage it. If any of these features are detected, the matter will be referred to the collector of stamps for adjudication instead of being registered straightaway,” said an official.The collector of stamps will decide whether the instrument is merely a GPA or is, in substance, a conveyance deed liable for full stamp duty. While such an order is to be passed within 30 days, govt has allowed an extension of up to three months in exceptional circumstances. No such document can be registered unless the adjudication is completed and the applicable stamp duty has been paid.Officials said the move is aimed at plugging revenue leakages while protecting genuine buyers from disputes arising out of defective property documents. To strengthen oversight, sub-registrars will have to maintain a separate register of such cases and submit monthly reports.
