NEW DELHI: Chief Minister Rekha Gupta has issued stringent orders to address the misuse of power of attorney aimed at avoiding stamp duty.
She instructed that all power of attorney documents executed for non-blood relations be reviewed and decisions made by stamp collectors in Delhi within 30 days.
This initiative is expected to mitigate revenue loss in immovable property registrations and tackle the land mafia along with irregular practices observed in sub-registrar offices, according to a statement from the Chief Minister’s Office.
The General Power of Attorney (GPA) documents granted in favor of individuals outside immediate family (parents, spouses, children, and siblings) will no longer be directly registered by sub-registrars.
“Every such case will now be referred to the appropriate collector of stamps for adjudication to ascertain the applicable stamp duty,” the Chief Minister stated.
The collector must provide a reasoned written order on each reference within thirty days, determining whether the document is merely a GPA or if it attracts the full stamp duty associated with a conveyance deed (sale deed).
In exceptional situations, this period may extend to a maximum of three months. No GPA will be registered until the collector has issued an order and the corresponding stamp duty has been paid.
In alignment with the Chief Minister’s directives, stringent guidelines have been established for thorough scrutiny of property-related documents executed via GPA. All sub-registrars are required to ensure immediate compliance with these instructions, the CMO reported.
It has been noted that, in numerous instances, documents are merely registered as GPAs with minimal stamp duty, despite containing clauses related to property sale, possession transfer, and ownership rights.
Chief Minister Gupta emphasized that this practice constitutes clear evasion of stamp duty and will not be accepted under any circumstances.
She mentioned that every GPA document submitted for registration in Delhi will now be subjected to thorough examination by sub-registrars.
During the assessment, specific focus will be placed on whether the document includes any financial consideration, stipulates possession transfer, is irrevocable, or provides permanent authority to sell, gift, transfer, or mortgage the property.
Gupta warned that strict disciplinary measures would be implemented against sub-registrars registering GPAs that involve financial gain. Each sub-registrar’s office will maintain a separate register for these cases and submit monthly reports.
The Chief Minister has also instructed the development of an online tracking system within a month to monitor these cases, as indicated by the CMO.
