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(Querist) 22 April 2014 This query is : Resolved 
HELLO EXPERTS
MY QUERY IS THAT
1 ASHISH
2 SHAILESH
3 HITESH
4 INDIRABHAI (GRANDMOTHER)
PROBLEM IS THAT INDIRABAI HAS PEACE OF LAND
AND SHE HAS GIVEN A POWER OF ATTORNEY BY NOTARIES TO SHAILESH AND SHAILESH HAS GIVEN LAND BY AGREEMENT SALE TO ASHISH NOW SIR SUGGEST US IT IS IN LAW
BROTHER CAN GIVE A PROPERTY TO BROTHER IT IS LAW
Devajyoti Barman (Expert) 22 April 2014
One can nOt transfer land on the basis of unregistered POA.
WHAT EXACTLY DO YOU WANT TO KNOW?
R.V.RAO (Expert) 23 April 2014
please recollect supreme court judgement which said that transfer of immovable property through power of attorney/sale agreement will not be legally binding.

In Suraj Lamp & Industries Pvt Ltd v State of Haryana "the Supreme Court of India recently observed that it has become common practice to effect transfers of immovable property by way of either general power of attorney (GPA) sales or sale agreement, GPA or will transfers in order to evade, among other things, the payment of duties, taxes and other fees payable on transfer and registration (eg, stamp duty or registration fees).

Although it held that such transactions are illegal and cannot be recognised as valid under law, the Supreme Court further sought to distinguish these illegal transactions from genuine transactions entered into by parties in good faith. While referring to Sections 53A and 54 of the Transfer of Property Act and its decisions in Narandas Karsondas v SA Kamtam and Rambhau Namdeo Gajre v Narayan Bapuji Dhotra,

the Supreme Court further observed that a transfer of immovable property by way of sale can be effected only by a deed of conveyance. In the absence of a deed of conveyance (which must be duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred. The court further dealt with the importance of registering documents that record transactions of sale or transfer and the need for all states to take steps to curb malpractice, thereby reducing the circulation of unaccounted wealth (or 'black money') in society.

now it is your call to decide in the light of the above apex court judgement.


Dr J C Vashista (Expert) 23 April 2014
I respecfully disagree with Mr. R V Rao on the point of GPA granted by Indrabai to Shailesh (if it include power to sell) who further executed an agreement to sell to Ashish (brother)as the ratio of M/s Surya Lamps judgment is inapplicable in present case, since it do not transfer title on the grantee of the GPA i.e., Shailesh.
In the present case, as I have observed the GPA has been granted by executor for sale, consideration of which shall be passed on to the executor, Indrabai and Shailesh is authorisedly acting as an agent which is valid,however, it would have been better if the GPA was registered with SR.
Advocate. Arunagiri (Expert) 23 April 2014
1. Whether the POA is executed in foreign country by that notary or in India?

2. Whether the Sale agreement is registered.
malipeddi jaggarao (Expert) 23 April 2014
Query is not clear.
T. Kalaiselvan, Advocate (Expert) 24 April 2014
Unregistered GPA for the property related transactions are held invalid by Supreme court verdict, hence I agree with Mr. Rao in his opinion about the same to the present situation. Subsequent Unregistered sale agreement is also held as invalid. Let author precisely ask his question without confusing the experts with incorrect or insufficient details.
R.V.RAO (Expert) 24 April 2014
thanks. thiru kalaiselvan ji.


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