Delhi government has tightened the rules for property registration through General Power of Attorney (GPA). Its purpose is to prevent stamp duty evasion, property fraud and loss to the government exchequer.
Delhi government is going to make major changes in the rules of property registration, which also includes General Power of Attorney (GPA). The purpose of these new and strict rules is to prevent misuse of GPA agreements. In fact, till now GPA has been widely used to save stamp duty or to sell property fraudulently.
Why were the rules tightened?
The ministry said that many property deals were being registered only in the form of GPA paper, even though they involved sale of property, transfer of ownership or grant of possession. Because of this, people were saved from paying the full stamp duty on the sale deed. This was not only causing huge loss of revenue to the government, but cases of fraud were also increasing.
What is special in the new rules?
According to the new standards, now the sub-registrar will carefully examine every GPA document that comes for registration. Officials will also check whether the paper provides for money transactions, transfer of ownership, or permanent rights such as selling, mortgaging or transferring property. If such clauses are found, the document will be scrutinized more deeply before registration.
Collector’s approval will be necessary in many cases
A major change now is that if the GPA is in the name of a person who is not a close relative (e.g. parent, spouse, child, sibling), the sub-registrar will not register it directly. In such cases, the document will be sent to the Collector of Stamps. Collectors will decide whether the document is treated as a normal GPA or a conveyance deed, which attracts full stamp duty. The Collector will have to give a decision on this within 30 days, although in special circumstances this time can be extended up to three months.
More transparency and accountability
The government has asked all sub-registrar offices to maintain a separate register for such cases and submit reports regularly. An online tracking system will also be started within a month, so that these cases can be monitored and transparency can be increased. Disciplinary action may be taken against officers who violate these new rules.
Chief Minister Rekha Gupta said that the purpose of these restrictions is to rein in the land mafia and protect the common people from property fraud. He said that these measures will protect government revenue and bring more transparency in the property registration system in Delhi.