Power of attorney
vinay
(Querist) 18 October 2011
This query is : Resolved
sir, my query is, thorough power of attorney, can any one purchase a land either his/her blodd relative or else some outside person.the case is belongs to Uttar pradesh.
how can any officer of revenue board, can turned down the case of power of attorney & by which rules. please provide the rules.
ajay sethi
(Expert) 18 October 2011
as a matter of principle yourclose family relations can give you power of attorney for purchase of property . howver outsiders cannot do so .
power of attorney must be duly stamped and registered
prabhakar singh
(Expert) 18 October 2011
To drive you home please make it clear that a POA creates relation of principal and agent between the donor and donee of POA but it does NOT convey any right title or interest in the property in whose respect it is written in such a clear manner as a SALE or GIFT DEED CREATES THEN AND THERE.
M V Gupta
(Expert) 19 October 2011
A person can purchase property through POA by appointing another person as his agent to represent him in the transaction.Very Often on account of the absence or inability or preoccupation of the buyer to attend to the various formalities of purchasing the property, POA is given to a person in whom he has confidence and trust to negotiate on his behalf and buy the property.
dev kapoor
(Expert) 19 October 2011
I only suggest to go through the latest judgment of the Apex Court titaled " Suraj Lamp & Industries Pvt Ltd Vs. State of Haryana" delivered on 11.10.2011 & earlier Judgment reported in 2009 (7) SCC 363.
a.manoharan
(Expert) 20 October 2011
i agree with Mr.Dev Kapoor
Sailesh Kumar Shah
(Expert) 20 October 2011
In Uttar Pradesh, already POA is not registered by Sub-Registrar other than blood relations of principal.
R.Ramachandran
(Expert) 20 October 2011
Dear Mr. Vinay,
We should understand the latest decision of the Supreme Court in the case of "Suraj Lamp & Industries Pvt Ltd Vs. State of Haryana", by first understanding the factual circumstances in which the decision was rendered and the issues that it was addressing.
There is a widespread tendency in the States of Delhi, Haryana, Punjab and Uttar Pradesh, to sell or buy the property by means of a Simple Sale Agreement/General Power of Attorney/WILL - without actually getting any SALE DEED/CONVEYANCE DEED executed and Registered. By this method, the persons involved in the transaction avoided payment of Stamp Duty and Registration Charges.
On the basis of the said SA/GPA/WILL further sale and purchase of the property was also carried on by granting further SA/GPA/WILL - again without execution of SALE DEED, thereby avoiding payment of Stamp Duty and registration charges.
Thus, there is a parallel transaction in the sale and purchase of immovable property WITHOUT PAYMENT OF STAMP DUTY AND REGISTRATION CHARGES. This method was completely circumventing and provisions of the Registration Act and Stamp Act.
The Supreme Court only said that a property cannot be 'transferred' / 'sold' / 'purchased' merely by Sale Agreement / GPA. In order to make the Sale complete and perfect in favour of the buyer, on the basis of the Sale Agreement / GPA a SALE DEED / CONVEYANCE DEED also needs to be executed and Registered, by payment of requisite Stamp Duty and Registration Charges. The Supreme Court only said that in case where the SALE DEED / CONVEYANCE DEED has not been executed and Registered, then the 'sale' / 'transfer' / 'purchase' of the immovable property in favour of the buyer IS NOT COMPLETE and the buyer will not get COMPLETE TITLE TO THE PROPERTY. In other words, the said sale will be ineffective.
However, there is absolutely no bar for grant of Power of Attorney - whether to any relative or to a third party - duly registered with the power to execute the sale of any immovable property. If any such sale is effected, then the said sale has to be got completed by execution of SALE DEED / CONVEYANCE DEED by payment of Stamp Duty and Registration by payment of Registration Charges.
A power of attorney is a document of convenience and well recognized by law. There can be no restriction that only a blood relative can be appointed as a power of attorney. But wherever there is a Power Attorney granted to any person to deal with an immovable property, then the said power of attorney is required to be registered. Once the said power of Attorney effects the sale, then the SALE DEED is also required to be executed and Registered to make the sale complete and title of the purchaser perfect.
Mr. Shailesh, can you please indicate the basis / authority on the basis of which the Sub-Registrar has stopped registering the POA other than blood relations of principal.
vinay
(Querist) 20 October 2011
thanx to r. ramachandran sir
Sailesh Kumar Shah
(Expert) 21 October 2011
Shri R. Ramachandran,
There is government order to not to register poa other than blood relations. If someone register poa other than blood relations, he have to seek permission before ADM(F&R).
Thanks
with Regards,
M V Gupta
(Expert) 22 October 2011
Dear Mr. Shailesh,
Mr. Ramachandran has correctly explained the implications of the SC Judgement in the Suraj Lamp case.The Judgement does not contain any embargo on giving of POA to a third party for execution of a sale deed and registering it on behalf of the Principal. I would be grateful if you u can upload the Govt order referred by you so that we can understand the real import of the same.
