Response

Registration of GPA in India is done at the offices of the Sub-Registrar. GPA in India has to be prepared on stamp paper of appropriate value. The Principal and the GPA Holder have to visit the sub-registrar office with the GPA for registration. The executed GPA has to be presented to the Sub-registrar along with original documents with copies showing proof of ownership, proof of residence and proof of identity. Two passport size photographs and two witnesses who should also have proper identification are also required for registration of GPA.
A GPA must be registered with the sub-registrarÕs office to get legal validity. Moreover, the GPA is not valid for an indefinite period. It is valid for the lifetime of the principal or the one who is awarding the GPA. It can also be revoked within the lifetime of the owner. The SPA, on the contrary, stands revoked when the specific task assigned to the SPA is completed.

Can a registered GPA holder sell a property?

No. Even if the GPA is registered with the sub-registrar’s office, the GPA holder is not authorised to sell the property on the owner’s behalf. Even the latest judgement by the Supreme Court of India categorically invalidates the sale of a property through GPA. A GPA holder only has the authority to carry out tasks assigned by the owner, excluding the selling of property.

GPA in the realty sector

Looking at the legalities involved with the GPA route, it is generally not advisable to go for a land deal through this process. However, it was prevalent in India as it provided monetary benefits to both the buyer and the seller.

According to the law, whenever the titles of a land piece are changed, the buyer has to pay stamp duty and registration charges to the government. The seller will also have to bear the capital gains tax on the transaction. By transferring property through a GPA, these charges are avoided, causing a huge loss to the exchequer.

Reference: The Indian Registration Act 1908

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LAWAYZ-2023-477