Can I transfer property in Delhi through power of attorney?
Two years ago in 2012, the Supreme Court of India, in the case of Suraj Lamps and Industries (P) Ltd vs State of Haryana, had made it clear that SA/GPA/WILL transactions are not `transfers’ or `sales’ and that such transactions cannot be treated as completed transfers or conveyances. Following the judgment the Delhi Government issued a circular dated 27 April 2012 directing the relevant registration authorities not to register any GPA Sales in Delhi.
Thus, following the circular, no transfer of immovable property could take place in Delhi through a GPA. Though sale is still not allowed through GPA, the DDA has decided to allow the conversion of property from leasehold to freehold on the basis of registered agreement to sell and general power of attorney.
The decision came in August 2014 wherein the DDA issued a notice and said that the Competent Authority in Delhi Development Authority (DDA) after taking the opinion of Solicitor General has decided to allow such conversions subject to producing documents authenticating that the transaction is genuine.
The government construction body said that the conversion had been suspended in the wake of a Supreme Court judgment in a case in 2011 and due to several unlikely results, the body has decide to accept applications for conversion of property from leasehold to freehold.
However, for that the genuineness would be verified at the time of processing of conversion application and subject to production of related documents such as agreement to sell registered with sub-registrar of Delhi.
Conversion only after complete verification
The DDA says that on verification of the concerned documents the lease administrating agencies i.e. Land Disposal Wing and Housing Wing would process the conversion applications. However, a lot of this will depend upon the completion of all other codal formalities as laid in conversion brochure.
The urban housing company says that the person seeking conversion on the basis of a GPA is required to produce several documents that include documents like Agreement to Sell registered with Sub-Registrar of Delhi. According to the agency the registered ‘Agreement to Sell’ should contain the stipulation that the entire sale consideration has been received by the seller and the physical possession of the property has been delivered to the purchaser.
The DDA official clarified that verification of the physical possession of the applicant, who has applied for conversion of leasehold tenure into freehold, will be done by way of electricity bills, water bills, telephone bills etc.