CM orders check on stamps duty evasion in property registrations through GPAs

Chief Minister Rekha Gupta issued strict orders on Wednesday to combat the misuse of power of attorney for evading stamp duty.

She directed that every power of attorney document executed in favour of non-blood relations must be evaluated and decided upon within 30 days by the collectors of stamps in Delhi. The move will curb revenue loss in the registration of immovable properties and also rein in land mafia and irregular practices at sub-registrar offices, the Delhi Chief Minister’s Office said in a statement.

The General Power of Attorney (GPA) documents executed in favour of individuals other than blood relations, specifically parents, spouses, sons, daughters, brothers, or sisters, will no longer be directly registered by the sub-registrar.

“It has come to the notice of this Department that General Powers of Attorney (GPAs) relating to immovable properties are being presented for registration on nominal stamp duty. In several cases, such documents, though titled as GPAS, contain recitals indicating transfer of ownership rights, receipt of consideration, transfer of possession, irrevocable authority and powers to sell, transfer, gift, exchange, mortgage or otherwise permanently alienate the property,” according to an order issued by the Stamp and Registration section of the Revenue Department.

The order said that no such GPA shall be registered until the speaking order of the Collector of Stamps has been received and complied with, including payment of the requisite stamp duty, wherever applicable. In a statement, the chief minister said that all such cases will be mandatorily referred to the concerned collector of stamps for adjudication to determine the appropriate stamp duty payable.

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 GPA or attracts full stamp duty as applicable to a conveyance deed (sale deed), she said.

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, she said.

Acting on the chief minister’s directions, strict guidelines have been issued for the detailed scrutiny of property-related documents executed through GPA. All sub-registrars have been directed to ensure strict compliance with these instructions with immediate effect, the CMO said.

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.

The chief minister stated that this practice represents direct evasion of stamp duty and will not be tolerated under any circumstances.