Asked June 30, 2016

GPA property transfer

  • 1 Answer

I received a property from my relative which was transferred to me by a notorised GPA. Can I sell this property now? If there is a court hearing in this regard then kindly share the case no

Answer 1

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Saumya Kumar
Over a long period of time, GPA have been used to transfer property without a proper sale deeds. Courts across the country have recognized that these transfers should not be allowed. The Delhi High Court, in Asha M. Jain v. Canara Bank (94 (2001) DLT 841) clearly stated that transfers by GPA are unwarranted and not justified, unintendedly misleading the general public. In light of these opinions, the Supreme Court recently in the case of Suraj Lamp and Industries Pvt. Ltd. v. State of Haryana ((2012) 1 SCC 656) has identified that such transactions must not be allowed. The Court in this case stated that a transfer of immoveable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of a deed of conveyance which is stamped and registered as required by law, no right, title or interest in an immoveable property can be transferred. Considering the opinion of the Court, it will be difficult for you to sell the property. The position taken by the Court esentially means that currently you are not the owner of the property but merely reuired to act on behalf of your relative. Therefore you have no authority to trnasfer the property as you are not the rightful owner yourself. For a person to sell a property, it has to be established that you own the property by the help of a previous sale deed or maybe a will. The opinion of the Court indicates that a GPA will not be enough to establish your ownership making it very difficult for you to transfer the said property. You should explore the possibility of either purchasing the property from your relative. The Supreme Court in the Suraj Lamp Case identified that these restrictions will not apply in case where a genuine case where the GPA is used for general management of the property. It is observed that though sale via GPA is a normal practise, the recent Supreme Court decision will have it's repurcussion with States making new laws to regulate such practices. It is therefore better to avoid the legal hassels at a later stage when your sale maybe challenged by a new buyer and acquire the ownership over the property by executing a sale deed with your relative.
Agree Comment 0 Agrees almost 6 years ago

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