The Delhi government has introduced stricter rules for property registrations carried out through General Power of Attorney (GPA) to curb stamp duty evasion, property fraud and revenue loss.
Delhi govt to revamp property registration, including GPAs. The new standards are intended to prevent the abuse of GPA agreements, which have been exploited to evade paying full stamp duty or to assist fraudulent property sales.
Why the Rules Are Stricter
The ministry also said that several property transactions were being registered as simple GPA papers with terms connected to sale, transfer of ownership or possession of property. It let certain parties to escape the whole stamp duty payable on a sale deed. The move also led to revenue loss to the government and an increase in scope of fraud.
What is new under the new rules?
As per the new standards, the Sub-Registrar will review each of the GPA documents submitted for registration in detail. The officials will also check if the paperwork has monetary consideration, transfer of ownership, irrevocable powers or permanent rights to sell, give, mortgage or transfer the property. Where such clauses are found, the document will be more extensively investigated before registration.
Many cases require the collector’s approval.
“Now, one of the major changes is that GPA documents executed in favour of persons other than close blood relatives (i.e. parents, spouse, children, siblings) will not be directly registered by the Sub-Registrars. In such circumstances, the document has to be forwarded to the Collector of Stamps who will decide whether the document should be considered as an ordinary GPA or as a conveyance deed which attracts full stamp duty. The Collector has been asked to pass a reasoned order within a period of 30 days which may be extended up to three months in extraordinary situations.
More Transparency and Accountability
The government has also asked all Sub-Registrar’s offices to maintain a separate registry for such situations and report on a regular basis. In a month, we will have an online tracking system for monitoring referrals and enhancing transparency. Officials who breach the new criteria might face disciplinary action.
Chief Minister Rekha Gupta said these restrictions are aimed at preventing the operations of land mafias and saving people from fraudulent property dealings. The measures are aimed at protecting government income and providing more openness in the property registration system in Delhi, she said.