1) as powerful of attorney holder you should endeavour to sell land to third party

2) consideration received should be credited to accounts of the shareholders

3) do not sell land to yourself

Hi,

You may execute sale by your own as you have POA.

you may collect the money and pass to the other partners.

You have to pass the money to other partners to save capital gain tax in their hands.

1. An attorney cannot sell land to himself on the basis of POA unless he is specifically authorised to do so in the POA.

2.Such act being an instance of conflict of interest is not legally valid and such sale cane be easily challenged and set aside by the Principals of the POA.

3. Hence if all of them agree sell this to any other person of choice or if they agree to transfer this to your name then make a gift deed in your favour.

1. To be honest to my knowledge you have no such power, however you can sell the property by other modes and you can file a suit for declaration against the persons who are claiming the right and get the property declared in your name.. The relevant information is follows

No property sale on power of attorney: Supreme Court

The court rules that transfer through general power of attorney cannot give ownesrship title to the buyer.]

Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.

In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property.

A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds.

"A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA.

The judgment delivered on Wednesday would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people.

Navin Raheja, chairman and managing director of Raheja Developers said, "The court's decision will help to curb the circulation of black money to some extent in the real estate sector where titles are manipulated. Besides, many property transactions where prices are rounded off will be affected. However, overall there won't be any significant impact on normal property sales."

Is sale of Immovable Property through General Power of Attorney (GPA) Safe ?

Is sale of Immovable Property through General Power of Attorney (GPA) Safe . A Special Power of Attorney either to sell or to manage the property. SC says that that such kind of Indirect Sales adversely affected the economy, civil society and law and order Law Articles on various laws , amendments and Judgments from Supreme Court and High Courts in India

This question has haunted the legal experts since long time. However, the controversy has been set at rest recently by the Honble Supreme Court vide its judgment rendered in case titled as Suraj Lamp and Pvt. Ltd. v/s State of Haryana and another.

Honble Apex Court dealt with is whether immovable property can be legally transferred or conveyed through a General Power of Attorney, Agreement to Sell and a Will? Before we embark upon this question, it is very essential to know as to why such kind of indirect sales came into existence. The most dominant reasons for such kind of Indirect Sales were to avoid prohibitions/ conditions regarding certain transfers (as some deeds of conveyance contain the clauses that the property can only be sold after 15 years from the date of construction of some building on the plot/property), to avoid payment of stamp duty and registration charges on deeds of conveyance, to avoid payment of capital gains on transfers, to invest black money etc. The seller of the immovable property in these indirect sales after receiving the agreed consideration, deliver the possession of the said property and executes some or all of the following documents:

(1) An agreement of sale (containing the terms which would be similar to terms of sale) by the seller in favor of the purchaser and undertaking to execute any document as and when required in future.

(2) An agreement of sale agreeing to sell the property with the separate affidavit confirming receipt of full price and delivery of possession and undertaking to execute sale deed whenever required.

(3) An Irrevocable General Power of Attorney in favor of the purchaser or his nominee.

(4) A Special Power of Attorney either to sell or to manage the property.

(5) A Will bequeathing the property to the purchaser (as a safeguard against the consequences of death of the vendor before transfer is effected).

The Honble Apex Court noted that such kind of Indirect Sales adversely affected the economy, civil society and law and order. Firstly, it enables large scale evasion of income tax, wealth tax, stamp duty and registration fees thereby denying the benefit of such revenue to the Government and Public. Secondly, such transactions enable persons with undisclosed wealth/income to invest their black money and also earn profit/income, thereby encouraging circulation of black money and corruption.

RELEVANT LEGAL PROVISIONS

Following are some relevant legal provisions which deals with the matter in hand either expressly or impliedly:

Section 5 of the Transfer of Property Act (hereinafter called as TPA) defines transfer of property as: In the following sections transfer of property means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself [or to himself] and one or more other living persons and to transfer property is to perform such act.

Section 54 of the TPA defines sales thus: Sales is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.

Sale how made: Such transfer, in the case of tangible immoveable property of the value of one hundred rupees or upwards or in the case of reversion or other intangible thing can be made only by a registered instrument.

Contract for Sale: A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties.

It does not of itself, create any interest in or charge on such property.

IMPORTANCE OF REGISTRATION

It is very important to mention herein that the registration has many advantages. Registration provides safety and security to transactions relating to immovable property, even if the document is lost or destroyed. It gives publicity and public exposure to documents thereby preventing forgeries and frauds in regard to transactions and execution of documents. Registration provides information to people who may deal with a property as to the nature and extent of the rights which persons may have, affecting that property. As the records of the registered document is always available, people may see the record and enquire and ascertain what the particulars are and as far as land is concerned what obligations with regard to them. Registration of documents makes the process of verification and certification of title easier and simpler. It reduces disputes and litigations to a large extent.

Now lets see as to the actual importance in legal conspectus i.e. legal sanctity, of the above-mentioned documents comprised in the Indirect Sale of the immovable property, one by one.

First, we will discuss about the validity of Agreement of Sale or Agreement to Sell:

As per Section 54 of Transfer of Property Act, a contract of sale, that is, an agreement of sale does not, of itself, create any interest in or charge on such property. The Honble Apex Court in many earlier judgments after recognizing various provisions of law has held that a contract of sale at the most creates a fiduciary character of the personal obligation and is annexed to ownership but does not in any way amounts to an interest or easement therein. Therefore, transfer of immovable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred. Any contract of sale (agreement to sell) which is not a registered deed of conveyance (deed of sale) would fall short of the requirements of sections 54 and 55 of TPA and will not confer any title nor transfer any interest in an immovable property. According to TPA, an agreement of sale, whether with possession or without possession, is not a conveyance. Section 54 of TP Act enacts that sale of immovable property can be made only by a registered instrument and an agreement of sale does not create any interest or charge on its subject matter.

Second, we will discuss about validity and scope of Power of Attorney:

A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. The power of attorney is creation of an agency whereby the grantor authorizes the grantee to do certain acts specified therein, on behalf of grantor, which when executed will be binding on the grantor as if done by him. It is revocable or terminable at any time unless made irrevocable in a manner known to law. Even an irrevocable attorney does not have the effect of transferring title to the grantee. So, power of attorney does not convey ownership. An attorney holder may however execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor.

Third, we will discuss about the scope of Will: A Will is the testament of the testator. It is a posthumous disposition of the estate of the testator directing distribution of his estate upon his death. It is not a transfer inter-vivos. A Will is intended to come into effect only after the death of the testator and is revocable at any time during the life time of the testator. So, even a Will cannot transfer title or ownership in an immovable property.

CONCLUSION

A discussion above thus holds that immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of GPA sales or Agreement to Sell/GPA/Will transfers do not convey title and do not amount to transfer nor can they be recognized or valid mode of transfer of immovable property.

Last but not least it is further pertinent to mention herein that in the said judgment the Honble Bench has merely drawn attention to the legal position that SA/GPA/WILL transactions are not transfers or sales and that such transactions cannot be treated as completed transfers or conveyances. But they can still be treated as existing agreement of sale. Nothing prevents affected parties from getting registered deeds of conveyance to complete their title.

1. Unless there is a clause in the GPA which restricts the agent to sell the property to himself he can be the buyer.

2. He should remit the consideration in his capacity as agent to the principal.

POA cannot execute the sale deed or transfer the property on his own name. The sale deed should be effected on the guideline value or on higher value than the guideline value. You cannot sell the same on nominal value. You may transfer the property in your name through the settlement deed or release deed executable by your relatives.

Sale to your self would not clear the frauds carried out by third parties

Hello,

Youbare acting on behalf of the principle and as such you can not take benefit out of the said power and sell the property to yourself.

This act of your’s can be challenged by any concerned party in future.

Regards

Further sale of the land would not make the title of the land clear if there has been some fraud in past.

Regards

1. As per law, a POA holder can sell the property of the executor of the said POA in his favour.

2. If he pays abnormally low amount towards consideration for buying the said property, it could be challenged later on as fake/sham sale by any body concerned with the said property. Moreover, the stamp duty shall have to be paid as per the current rate as claimed by the registrar and in case low price is stated to be paid, I.Tax department will consider the difference between the consideration paid and the current market price as deemed income and shall charge Income Tax thereupon. Consideration shall have to be paid to the titleholder of the property.

3. The POA holder can also register a Gift deed in his favour if he is allowed to register gift deed also as per the said POA.

1. If other share holders of the said land agree, you can register a gift deed as a POA holder in your favour if empowered to gift the property as per the said POA..

2. In any case, register the said Deed of Conveyance duly paying the required stamp duty and registration charge.

Not valid.

Relinquishment deed is easy and best option , Nominal fee.

As a power of attorney holder you can sell the property on behalf of your principals and as a buyer you can purchase the same by a registered sale deed.

The sale consideration amount have to be disbursed to the respective share holders accordingly.

Would sale to myself clear any issues regards any other land frauds carried out by third parties on the property?

You can make sure that you sell the property following the value either prevalent in the market or at par with the government guidelines value.

This will make sure that there can be no fingers point at you in this regard at a later stage.