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The Delhi government has introduced stricter procedures for registering General Power of Attorney (GPA) documents to prevent stamp duty evasion in property transactions. Chief Minister Rekha Gupta has directed that every GPA executed in favour of non-blood relatives must be referred to the Collector of Stamps for adjudication before registration. The measure aims to prevent the misuse of GPAs to avoid payment of stamp duty on conveyance deeds and curb irregularities in property registrations. Sub-registrars have also been instructed to scrutinise all GPA documents for provisions relating to monetary consideration, transfer of possession and ownership rights. The government has warned of disciplinary action against officials found registering GPAs involving monetary transactions in violation of the new directions.
The Delhi government has issued fresh directions to tighten scrutiny of General Power of Attorney (GPA) documents used in property transactions, introducing additional checks to prevent stamp duty evasion and irregular registrations. The instructions, issued in the past week by Chief Minister Rekha Gupta, require every GPA executed in favour of a person other than a blood relative to undergo adjudication by the Collector of Stamps before it can be registered.
According to a statement issued by the Chief Minister's Office (CMO), the revised procedure is intended to reduce revenue losses arising from property registrations while addressing alleged misuse of GPAs and irregular practices at sub-registrar offices.
Under the new framework, GPA documents executed in favour of individuals other than parents, spouses, sons, daughters, brothers or sisters will no longer be registered directly by sub-registrars. Instead, each case must be referred to the concerned Collector of Stamps to determine the appropriate stamp duty payable.
The Collector of Stamps has been directed to pass a reasoned written order on every referred case within 30 days. The order will determine whether the document is a genuine GPA or whether it effectively constitutes a conveyance deed requiring payment of full stamp duty applicable to a property sale. In exceptional circumstances, the adjudication period may be extended by up to three months. No such GPA will be registered until the Collector has issued an order and the applicable stamp duty has been paid.
The government has also issued detailed operational guidelines requiring sub-registrars to undertake comprehensive scrutiny of all GPA documents presented for registration. Officials have been instructed to examine whether the documents involve any monetary consideration, transfer possession of a property, are irrevocable in nature or confer permanent authority to sell, gift, transfer or mortgage the property.
The CMO stated that authorities had observed instances where documents containing provisions equivalent to property sale transactions were being registered merely as GPAs after payment of nominal stamp duty. According to the government, such practices resulted in direct evasion of stamp duty and would no longer be permitted.
Gupta directed all sub-registrars to ensure immediate compliance with the revised procedures and warned that strict disciplinary action would be taken against officials found registering GPAs involving monetary gains in contravention of the new instructions. Each sub-registrar's office has also been directed to maintain a separate register of such cases and submit monthly reports.
To strengthen oversight, the Chief Minister has further instructed officials to develop an online tracking mechanism within one month to monitor GPA-related cases and ensure compliance with the revised registration process.
Source - PTI