Residents happy as ban lifted on GPA-based transactions
The Delhi government’s move of lifting the ban on property transactions based on General Power of Attorney is likely to provide relief to lakhs of residents, mainly the ones dealing with group housing societies and the newly regularised colonies.
‘Ban’ History
Following an order passed out by the Supreme Court on property transactions, the Delhi government in April 2012 ordered to end GPA-based property transaction. On October 12, 2011, the Supreme Court had ruled that the property transactions done through GPA will have no legal sanctity and immovable properties can be sold or transferred only through registered deeds.
Later on 5th May, 2012, the Delhi High Court banned property dealings through GPA, after which the number of property transactions declined drastically. The residents had to face many issues due to the ban as the GPA-based transfer was much convenient to them than any other ways.
Growing registrations
A few days ago, the ban on GPA transaction was removed by the Delhi government. The order lifting the restriction came into effect starting from 22nd July and all the sub-registrar offices in Delhi were ordered to allow GPA-based registrations. Within a week’s time, about 107 properties have been registered based on GPA. As per the data available with the revenue department, 26 properties have been registered in Geeta Colony, 18 in Seemapuri, 15 in Kapashera, 14 in Kashmere Gate, 13 in Hauz Khas, 5 in Pitampura, 5 in Rohini, 5 in Preet Vihar, 4 in Asaf Ali Road and 2 in Narela.
But still, sources have revealed that, some of the sub-registrar offices in the city did not do registration of properties through GPA and many complaints have been received in this regard. The sub-registrar offices including Janakpuri, Mehrauli, Punjabi Bagh, Sector 16, Seelampur and Vivek Vihar among others did not allow registrations through GPA.
Revenue projection
With this rapid rate of GPA-based registrations happening in the city, it is estimated that the revenue collection would increase by about 10 percent. Senior officials of Revenue Department Delhi said that while the average monthly revenue collection is Rs 300 crore so far, the number is expected to grow further from now. After the ban was imposed on transactions through GPA, the revenue collection had fallen, they admitted.
Benefit to unauthorised colonies
In September 2012, around 895 unauthorised colonies had been regularised by the Delhi government and the lifting of ban will support sale and purchase of properties in these areas. Since the properties in unauthorised colonies do not have clear titles, other registration methods do not favor them.
However, the order issued by the divisional commissioner only allows transfer of properties through GPA and not the transfer of titles. Market analysts said that the move would lead to a hike in the number of properties available for sale in Delhi. They said that an average of about 20 percent properties are registered through GPA transfers.
