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need of registrability of Power of Attorney

(Querist) 24 July 2009 This query is : Resolved 
Dear Sir,
I am living at Delhi I want to execute a POA in favour of my brother to sell a specific property situated at KolKota. if I exectute the same in new Delhi, is there any need to get the same registered at New Delhi. if yes where I have to get it registered ? because if I am living at Aurangzeb lane in New Delhi, in which jurisdiction I go to get the same registered.

Regards
Dinkar
A V Vishal (Expert) 24 July 2009
Yes, the POA has to be registered at Delhi and the same can be enforced while registering the property at calcutta.
sanjeev murthy desai (Expert) 24 July 2009
Dear Dinkar Vidyarthi,

If you execute the POA in favour of your brother, that POA registration is optional. POA registration is not mandatory with in the family.

sanjeev desai





A V Vishal (Expert) 24 July 2009
Dear Sanjeev,

If it is optional then how will the calcutta registeration office accept it.
A V Vishal (Expert) 24 July 2009
The question involved here is that the querist wants to sell his immoveable property situated at calcutta but he is a resident of Delhi.
Dinkar Vidyarthi (Querist) 24 July 2009
Sir,
In case sister living in Delhi made a POA of property in which she is co-sharer among her two brothers, in favour of her Brother living in calcutta. than in such situation can that POA is termed as in family POA and its registry is still optional

Dinkar Vidyarthi
A V Vishal (Expert) 24 July 2009
Dear Sanjeev & Dinakar

32. Persons to present documents for registration

Except in the cases mentioned in sections 31, 88 and 89, every document to be registered under this Act, whether such registration be compulsory or optional, shall be presented at the proper registration office: --

(a) by some person executing or claiming under the same, or, in the case of a copy of a decree or order, claiming under the decree or order, or

(b) by the representative or assignee of such a person, or

(b) by the agent of such a person, representative or assign, duly authorised by power-of-attorney executed and authenticated in manner hereinafter mentioned.

Further:

33. Power-of-attorney recognisable for purposes of section 32

(1) For the purposes of section 32, the following powers-of-attorney shall alone be recognised, namely:-

(a) if the principal at the time of executing the power-of-attorney resides in any part of India in which this Act is for the time being in force, a power-of-attorney executed before and authenticated by the Registrar or Sub-Registrar within whose district or sub-district the principal resides;

(b) if the principal at the time aforesaid resides in any part of India in which this Act is not in force, a power-of-attorney executed before and authenticated by any Magistrate;
sanjeev murthy desai (Expert) 24 July 2009
Dear Vishal Sir,

If the person who residin in London execute the GPA in London in favour of his brother to sell the property of India that GPA should be stamped and Should be acept it otherwise seek a endorsement for refuse the registration of sale Deed.

sanjeev desai
sanjeev murthy desai (Expert) 24 July 2009

Dear A. V. Vishal Sir,

Section 32 of registration clearly apply only for the purpose of Power of Attorney for "Registration of Document" only not for sell the property.

Power of Attorney for Registration and Power of Attorney for Sell the property both have diferent authority.

sanjeev desai
A V Vishal (Expert) 24 July 2009
Sanjeev

S.33 further states in case the principal resides outside India then,
(c) if the principal at the time aforesaid does not reside in India, a power-of-attorney executed before and authenticated by Notary Public, or any court, Judge, Magistrate, Indian Consul or vice-consul, or representative of the Central Government:

I have not mentioned earlier since this clause is irrelavant in the present context. Moreover, POA for registration of Immoveable property is mandatory now and the stamp fee is Rs.1000/- in case the POA is in favour of a Blood relative and in any other case it is 1% of the property value.
sanjeev murthy desai (Expert) 24 July 2009

In my view section 32 should apply for the purpose of Document Registration not for execution.

Mr. Dinakar want to sell the property thorugh the execution of the sale Deed.

A V Vishal (Expert) 24 July 2009
Even though execution and registration are two different things, the purpose for executing the POA is not merely executing the sale deed but also registration of the same. If you go through the general clauses in a power of attorney you will find that the principal not only empowers execution but also registration by POA holder, mere execution without registration of the document does not hold it as a valid document.
sanjeev murthy desai (Expert) 24 July 2009
Dear Vishal Sir,

Let me know under which section Power of Attorney registration is mandatory.

Thank You.
A V Vishal (Expert) 24 July 2009
In A P, there is a recent amendment of the registration act and a GO is passed I will post it here if I happen to get a soft copy of it, on similar lines most of the state governments have passed GO's in their respective state gazzette. Please do me a favour, kindly approach the Karnataka Stamps and Registration department and seek information on any amendment in Karnataka and if a copy of the same is available then please post it for me.
Thanks in advance.
sanjeev murthy desai (Expert) 24 July 2009
Dear Dinakar,

Power of Attorney registration is optional (if you interested you can registred it) otherwise Law not considered as Power of Attorney registration is mandatory) but you have to bear the your stamp duty presecribed by the your state Government on that power of Atorney).

sanjeev murthy desai (Expert) 24 July 2009
Dear Vishal sir,

Till today, there is no amendment in this regard in Karnataka, if in future its amended i will share with you.

Thank you.

A V Vishal (Expert) 24 July 2009
Sanjeev just for u!!!

There are several documents which are not compulsorily registerable under Section 17 of the Registration Act.. Some of them require high stamp duty under the Karnataka Stamp Act and some of them do not. Even the ones which require high stamp duty, if they are under stamped, can be rectified later by paying a penal amount 10 times the original amount. Non payment of stamp duty does not make the document void or otherwise invalid. The consequences of under stamping as per the stamp act are 1. to make the document inadmissible for evidence before any authority capable of receiving evidence of before any public authority. 2. The document can also be impounded for enforcing the payment of full stamp value. An under stamped instrument can be admitted as evidence in court if penal stamp duty 10 times the value of the original amount is paid.

The following are the list of documents that do not require registration:
Power of attorney that is given except power to sell property
Development agreement
Agreement of sale given by a land owner to a developer
Lease agreement
Lease deed for less than one year
Memorandum of oral partition
recording a past transaction.
Power of Attorney:

Registration: In many cases, a general or specific power of attorney need not be registered. The question of registration arises only if a power is given for the sale of immovable properties. The Indian Registration Act does not make a power
of attorney compulsorily registerable. However, the Supreme court has recently ruled that a power of attorney given to sell immovable properties should be registered. It should be done at the office of the sub registrar within whose jurisdiction the person giving the power resides. If the person resides abroad, the power should be attested by the Indian consulate in that country. Such power of attorney should be used within 3 months from the date of its execution.

Stamp duty: The Karnataka Stamp Act prescribes the stamp duty to be paid on different types of power of attorneys. A power given to a close relative needs only Rs. 100/- stamp paper, even if it is to sell property. A power given to a person who is a non relative will attract a stamp duty of 2% of the market value of the property, which can be adjusted in the stamp duty payable on the sale deed. A power of attorney given to a developer will attract stamp duty at the rate of 4% on the market value of the property which is subject to a maximum of Rs 4 lakhs. This amount is not adjusted at the time of executing subsequent sale deeds.

Consequences of under stamping
The power of attorney: Can a sub registrar refuse to register a sale deed if the power of attorney produced by the person executing the sale deed is not properly stamped? Yes, the sub registrar can refuse to accept such a document for registration, provided he immediately gives the reason to be recorded in writing.

M. PIRAVI PERUMAL (Expert) 24 July 2009
In Tamil Nadu too unregistered POA/Notarized POA are not accepted for buying and selling of immoveable properties.
Khaleel Ahmed (Expert) 24 July 2009
Recently Supreme Court of India ruled that the Power of Attorney holder can not sell the property of the Principal.
sanjeev murthy desai (Expert) 24 July 2009
Power of attorney stamping procedure and registration procedure are diferrent. Registration Act not confirms that power of attorney should be registered. But registrered authorities asking like this. But common people not known this but we have to question it.

Foreign GPA (with out registered) acepting the sold the property of co-sharer but Indian GPA should be required for registration!!!! what a logic/magic of registration!!!!

A V Vishal (Expert) 24 July 2009
Foreign POA are also not accepted, there is a procedure in order to purchase or sell on basis of such POA.
A V Vishal (Expert) 24 July 2009
Dear Khaleel

SC decision is in some other context which is not applicable in the instant case
sanjeev murthy desai (Expert) 24 July 2009

Dear Vishal Sir,

Please specify that under which sections/rules/notifications/circulars/guidlines

Today also we registered two property in Bangalore jurisdictional Sub-registrar office they accepted unregistered power of attorney.

May be AP state has as you mentioned above.. in karnataka there is no required to registration.

sanjeev desai
A V Vishal (Expert) 24 July 2009
Did you represent the vendor or the vendee. Further,a signature on form 32A viz.SPA for registration is sufficient if it is signed by the vendor or vendee if they are unable to attend the registration. However, when the principal cannot sign such form and executes a POA to Sell then it has to be registered, this is what even the Karnataka Stamps Act speaks of, it say registration of POA is optional but not incase of a Power to Sell.
sanjeev murthy desai (Expert) 25 July 2009
Dear Vishal Sir,

I represented both the parties are my client, i done every thing as per law. Stamp Act relating only for the stamping of the documents not for registration.

sanjeev desai
A V Vishal (Expert) 25 July 2009
Sanjeev you have not got my point, if the vendor or vendee cannot attend the registration then u/s.32-A of the registration act they can give a SPA for which there is no requirement of registration, the form is attached along with the sale deed, however, the querisist is clearly stating that he is executing the POA for Sale, POA for sale and registration are two different things.
A V Vishal (Expert) 25 July 2009
I am enclosing the relevant GO of AP along with the format of SPA

O/o the Commissioner & Inspector General of Registration and Stamps/A.P., Hyderabad.

Memo No G1/8538/98. Dated 18-12-2004.

Sub:- Documents - Registration Act 1908 ~ Amendment to Section 32-A -Presence of Buyer or his authorised representatives and obtaining -Thumb Impression in T.I Register - Exemption of presence of buyer(s) who are residing out of State - instructions - Issued - Regarding.

Ref:- 1. Govt.Memo No.4214/Regn.( (1)/04, Rev (Regn.l) Department,
dt.20-10-2004.
2. A.P. Real estate Developer's Association President
Lr.No.A.P.R.E.D.A//I.G (R&S)/2004. dated.16-11-2004.

Through the memo cited in 1st reference, it was ordered by the Government that the buyer or his representative should be present at the time of registration and affix Thumb, Impression in the Thumb Impression Register under section-32-A of I.R. Act, 1908. Consequently, simplified procedure was prescribed in tune with the true object of the amendment under section 32-A and the same is being implemented w.e.f. 1-11-2004.
On receipt of representation from A.P. Real Estate and Developers Association vide reference 2nd cited, the same was carefully examined with reference to the provisions under section 32-A of I.R.Act. 1908 and the request for exemption of Buyers residing outside the State or in foreign countries was considered as genuine and reasonable, in view of practical problems expressed in their representation.
Hence, all the registering officers are directed to exempt the presence of buyers or their representatives in cases of buyers residing in other States/foreign countries, subject te submission of proof of identity and residence like. true copy of ration card/Driving License/ Identity Card issued by the Employer /PAN Card issued by Income: Tax Dept/Residence Certificate from any Revenue Official / consulate/Embassy Official, attested by any Gazetted Officer/Notary public along with such request made on the format prescribed U/s 32-A of Indian Registration Act 1908 (copy enclosed).

Contd ….2







-2-
Therefore, alt the District Registrars are requested to ensure implementation by all the registering officers in their jurisdiction while giving wide publicity and exhibiting the same on the notice board of the offices concerned.
All the District Registrars are requested to acknowledge the receipt of the Instructions immediately.
Sd/- LAL ROSEM. Commissioner & I.G. (R&S), A.P., Hyderabad.
To
Ail the District Registrars (By name).
Copy to the Deputy Inspectors General (R&S).
Copy to the Deputy Collectors (Flying Squad).
Copy to the District Registrar (Audit).
Copy to the All Officers & Sections In Commissioner & I.G (R&S) A.P.. Hyderabad.
Copy to CC.W. Section with a request to place the instructions on web-site.





SUPERINTENDENT.


Enclosed form:
PHOTOGRAPHS AND FINGER PRINTS AS PER SECTION 32-A OF REGISTRATION ACT, 1908.





























PHOTOGRAPHS AND FINGER PRINTS AS PER SECTION 32-A OF REGISTRATION ACT, 1908.

Sl.NO. Finger print in BLACK INK (left THUMB) PASS PORT SIZE PHOTOGRAPH NAME & PERMANENT POSTAL ADDRESS OF presentant Seller/Buyer



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Signature of Witnesses; Signature of the Executants
I am/we are residing at......................... and unable to present either my self/ourselves or send a representative are the time or registration m S.R.O/R.O .................. I / we mav be exempted from appearan
V.V.RAMDAS (Expert) 27 July 2009
Dear Vishal, Realy you are vishal and you have justified your name. Your contribution on Registration of POA is excelent and it clears all doubt on the subject.It is a very good contribution to the lawyers feternity. Many many thanks from my side.
sanjeev murthy desai (Expert) 28 July 2009
Document required to be registered compulsorily that document inadmissable in evidence otherwise it is admissable document. In the subject querry POA executed in favour of his brother/sister to sell/register the property that POA does not required compulsorily registered and any other Power of attorney also does not required to registered under the Indian Laws. But if the PoA executed in favour of third person to sell the property that POA has to be compulsorily stamped under stamp act as conveyance rate.

sanjeev desai
Sachin Bhatia (Expert) 07 October 2009
POA has to be registered at Delhi and the same can be enforced while registering the property at calcutta.


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