Dear Client,
In a landmark verdict, the Supreme Court, while delivering its judgment in the Suraj Lamp & Industries Pvt Limited vs the State of Haryana case, ruled that property transactions carried out by way of PoA do not hold legal validity.
“A PoA is not an instrument of transfer in regard to any right, title or interest in an immovable property,” a three-judge bench, headed by justice RV Raveendran, said, adding that property can legally be transferred only through a registered sale deed.
The judgment, which came after interpreting various provisions of the law concerning property sales and became effective retrospectively, said it would not affect the validity of sale agreements and PoAs executed in genuine transactions.
The top court cited specific examples to elaborate on genuine cases. “For example, a person may give a PoA to his spouse, son, daughter, brother, sister or a relative, to manage his affairs or to execute a deed of conveyance,” it said. While stating that municipal bodies should not entertain mutation requests for properties that changed hands through GPAs, it clarified that existing records should not be disturbed, because of the verdict.
Following the SC’s ruling, the Delhi government, in 2012, came up with a circular banning the sale of property through GPA, a will and agreement to sell, collectively or separately.
Hence, you can sell the property only if you have a registered PoA. However, the relevant sub-registrar may not allow the sale of immovable property through a GPA and may insist on a specific PoA for the sale.
Thankyou.
