• GPA exec by Sri Javarayappa in favor of Sri. Ravi, later Sri Ravi on basis of GPA Regd Sale deed

The Registered general Power of attorney executed by Sri Javarayappa (1) Smt. Chandramma w/o Sri Javarayappa (2) Sri. J. Lokesh S/o. Sri Javarayappa (3), Sri. Shivaswamy S/o. Sri Javarayappa (4), Sri. MUkunda S/o. Sri Javarayappa (5) Smt. Geetha D/o. Sri Javarayappa (6) in favor of Sri. Ravi S/o J Puttaswamy, vide document no. MYW – 4 - 00362 / 2015-16 in the office Sub registrar Mysore (W) stored in CD no. MYWD. 61 on dated. [deleted].

Later Sri. Ravi S/o J. Puttaswamy, had executed the Absolute Sale deed in favor of himself no vide document no. MYW – 1 - 06901 / 2017-18 in the office Sub registrar Mysore (W) stored in CD no. MYWD. 92 on dated. [deleted].

The question now;
 1) whether the Registered G P A holder Can registered the Absolute sale deed in his name on the basis of G PA.
2) In the G PA its is clearly said in one of the point that he or any one of the person whom he wants the property can register/ transfer by way of sale.
3) Necessary Stamps have paid toward as per proscribed by the govt. 
4) Is there any Lacuna or any title defectiveness.
 Please give your valuable opinion 
Thanks and Regards.
Venu Saragur
Asked 5 years ago in Property Law
Religion: Hindu

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10 Answers

As per what you submitted the GPA holder has himself executed a sale deed in his favour it is not possible since as per transfer of property sale must include monetary consideration. If sale consideration is paid to real owner then title is not defective. Here only GPA is executed in his favour. You can contact me if you need any clarification in mysore.

Swarnarka Chowdhury
Advocate, Mysore
1879 Answers
5 Consultations

5.0 on 5.0

sale deed can be executed by the GPA in his own favour and he will appear before the sub registrar on behalf of both the person is legal and valid, because he is selling the property on behalf of somebody else to himselF

2) tithe is not defective

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

1. A constituted attorney can not make sale in his own favour since the same would be the conflict of interest.

2. Yes but this does not include the attorney himself.

3. Yes, the title is defective.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

Hello,

The SC has clearly held that no sale can be made on the basis of a GPA.

Reference may be drawn to the following article:

https://www.indiatoday.in/india/north/story/property-sale-through-gpa-not-valid-[deleted]

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

The registration so done by Ravi is completely legal and valid. The sellers had authorized Ravi to execute the sale deed on their behalf in favour of a third party or to himself. In this case, Ravi went ahead and registered it in his name, the sellers have received the sale consideration. Hence this is a valid transfer of title and cannot be questioned.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Hi,

There is no lacuna and the sale deed is fully valid.

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

the GPA by Javarayappa and his family in favour of Ravi is actually a transfer of property which attracts payment of stamp duty on the market value of the property or the consideration paid to the grantors of the GPA, whichever is higher

a sale is always coupled with consideration passing from buyer to seller

by the GPA since a power to register the sale deed in favour of Ravi is given, it means that a property is sold and transferred to Ravi under the guise of a GPA

So check if proper stamp duty as applicable on a sale deed is paid on the GPA

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

Dear Sir,

My answers are as follows:

1) whether the Registered G P A holder Can registered the Absolute sale deed in his name on the basis of G PA.

Ans: After 2011 sale deeds through GPA are invalid as per following SC judgment.

2) In the G PA its is clearly said in one of the point that he or any one of the person whom he wants the property can register/ transfer by way of sale.

Ans: All terms of GPA regarding execution sale deed are invalid.

3) Necessary Stamps have paid toward as per proscribed by the govt.

Ans: Does not arise.

4) Is there any Lacuna or any title defectiveness.

Ans: Yes, as per following judgment of Supreme Court.

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No property sale on power of attorney: Supreme Court

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 immovableproperty 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.

• Flat sold by builder to third party whem my Agreement to sale was valid

I had executed a Agreement to sale on one flat at Agra U.P. in 02/11/2012 with a validity of 15 months ,after 15 months the builder with mutual consent and reason that the the construction work is not over renewed it for another 12 months upto 28/01/2015,again with the same reason it sought and extension of another 6 months of agreement to sale which was made and agreement to sale was extended upto 22/07/2015.

After this we issued a notice to the builder and on reply to notice the builder through its legal counsel sought again time upto 15/10/2015.Subsequently again a notice was given on 17/10/2015 to execute the sale deed but the builder again replied by letter and sought extension upto 15/07/2016 with the same reason that flats are incomplete.After 15/10/2016 the builder is untraceable and recently he was arrested on forgery charges and currently in jail.On enquiry I came to know that the builder sold my flat that was having valid agreement to sale to third party with sale deed dated 28/06/2014.During this period my agreement to sale was valid but now builder is in jail what is the legal remedy and the party having sale deed has occupied the flat .now what is the legal remedy me to get my flat back.

Section 53A in The Transfer of Property Act, 1882

1[53A. Part performance.—Where any person contracts to transfer for consideration any immoveable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that 2[***] where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract: Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.]

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Sec 202 of Indian contract act says irrevocable GPA cannot be cancelled as it is executed for consideration.

Section 202 in The Indian Contract Act, 1872

202. Termination of agency, where agent has an interest in subject-matter.—Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. —Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest." Illustrations

(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."

(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death. (b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death."

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Govt tightens power of attorney rules

CHENNAI: The Tamil Nadu registration department has tightened the noose around realtors using power of attorney (POA) for fraudulent land deals. Power of attorney authorizes a person to carry out transactions or act legally on behalf of another.

Under the new rules, a power of attorney holder seeking to carry out a land transaction will have to provide documentary evidence to the sub-registrar to prove that the principal, the person who issued the power of attorney, is alive. The principal has to obtain a "live" certificate with his photograph affixed to it from a registered medical practitioner or a gazetted officer. These certificates are valid for 30 days.

As per a recent order of the inspector general of registration, the new rules are applicable to all POAs registered from February 4. By law, POA is not valid once the principal dies. Section 34 of Tamil Nadu Registration Act says it is the duty of the sub-registrar to ascertain whether the POA holder has the right to execute a transaction on behalf of the principal. But sub-registrars register property documents without bothering to verify whether the principals were alive.

"In Tamil Nadu, where a large number of land transactions are carried out on the basis of POAs to circumvent payment of stamp duty and registration fees. Many instances have been reported of POA holders selling land after the death of the principal. Buyers get into trouble when legal heirs of the principal claim rights over the property. Such cases end up in protracted legal battles and ultimately the sale deeds are declared invalid," said a senior official.

There have been instances of people impersonating land owners and executing fraudulent POAs. In one case, land worth 9 crore on Venkatnarayana Road was sold to a business group based on a POA, reportedly executed by the land owner in 2008. Legal heirs of the land owner subsequently filed a case of forgery against the business group, brokers and others involved in the deal as the owner had died 28 years earlier. When police refused to take prompt action, the owners moved the court.

As per law, the principal also has the right to rescind a POA. "If there is a mention of a consideration (amount) in the POA, the holder can claim that money through legal means. But he cannot claim rights over the property once the POA is rescinded or the principal dies," said the official.

In 2010-11, more than 3.75 lakh POAs were registered across Tamil Nadu for property-related transactions. The number came down to 1.8 lakh last year. It is going up again this year, said the official.

Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
483 Consultations

4.8 on 5.0

1. to 3. The registered GPA holder can act as the Vendor being the POA holder of the title holders of the property in question and register a sale deed and can also act as the Vendee/Buyer in the said sale deed.

4. The said registered sale deed is perfectly valid as per law.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

There is no legal infirmity in this, the GPA can very well execute a registered sale deed in favor of himself as a vendor to the buyer.

If the Principals do not have a complaint about not receiving the sale confederation amount then only the trouble may arise.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

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