The rules for buying and selling property in Delhi may change soon. Delhi government is preparing to ban the buying and selling of houses through General Power of Attorney (GPA). The government is taking advice from legal experts in this regard. According to the report published in Hindustan newspaper, if this proposal is implemented, then only family members can be given property rights through GPA, while it will be mandatory to get registration done to sell the house to any other person.
Let us tell you that even today in many unauthorized and raw colonies of Delhi, people buy and sell houses through GPA instead of registry. Due to this, many times the same property is sold to many people and the buyers become victims of fraud. The government believes that with the implementation of the new rules, there will be a significant reduction in such frauds and property disputes.
Government also suffers loss of revenue
The government does not get stamp duty and registration fees in the buying and selling done through GPA. Usually people make the deal by making GPA on stamp paper of only Rs 100. Whereas after getting the registration done, 5 percent stamp duty has to be paid on purchasing property in the name of women and 7 percent in the name of men. In such a situation, the government has to suffer a loss of crores of rupees of revenue every year.
Will get ownership rights from PM-UDAY scheme
The government wants that those people who do not yet have valid ownership rights of the property, should apply under the PM-UDAY scheme and get the ownership rights of their house. Similarly, in Lal Dora areas also, people are being given property rights through ownership scheme. Only after this they will be able to sell their property legally through the registry.
The process will proceed after legal opinion
According to government officials, the legal aspects are being thoroughly examined before implementing this proposal. Experts will decide under which legal provision ban on buying and selling through GPA can be imposed, so that there is no legal dispute in future.
What is GPA?
General Power of Attorney (GPA) is a legal document through which a person gives authority to another person to do certain things on his or her behalf. However, buying and selling of property on the basis of GPA alone is not considered as proof of absolute legal ownership. This is the reason why the government now wants to increase transparency and stop property related disputes by promoting the registry based system.
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