Sunny Bhat (Manager) 14 March 2011

GPA from NRI not registered in India

Dear Sir,

I am planning to Buy a resale property in Bangalore. Its a 5 year old construction. Current owner has purchased this property from land owner Mr A & Mrs B (Husband and Wife) . At the time of sale deed Mr A & Mrs B were in Dubai. Current owner has provided me GPA issued by Mrs B in favor of her husband Mr A (On stamp paper and notarized) and Mr A has issued GPA in the name of her sister Mrs C duly signed by consulate of India in Dubai.

Problem is GPA is not properly stamped as per the Karnataka Stamp Act, 1957. Also on GPA witnesses signature are not present and is executed on plain paper in Dubai but is signed consulate of india in dubai at that time. I have following queries

1. Is this GPA valid in India for execution of Sale deed at that time

2. If no then is there any solution to get this issue/problem rectified now i.e. any turnaround

3. Is it right Mrs B issuing GPA to her husband Mr A and in turn he issue GPA to Mrs C i.e. will Mrs C become default GPA holder for both Mr A and Mrs B

4. Pls suggest shall i go ahead with the deal or not

Thanks in advance for all the help

Nitin

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1 Replies

ALI M M (Senior Consultant) 14 March 2011

Dear Mr Nitin,

The title in the proposed Propeorty is defective. The procedure in sec 18 of The Stamp Act had not been followed by the original vendors.

Only right solution is to get the sale deed duly executed by the original vendors who shall join the sale deed as confirming parties and the present so called titled holder shall be your vendor. To pass a perfect title the vendors of the present title holders must join the sale deed as confirming parties.