News: GPA\SPA cannot be treated as instrument of transfer of title as per the Transfer of Property Act.-21.01.2018

GPA\SPA cannot be treated as instrument of transfer of title as per the Transfer of Property Act.

CHANDIGARH: In significant development, the UT administration has decided not to consider transfer of properties on general power of attorney (GPA) and special power of attorney (SPA).

The decision has been taken following directions of the Supreme Court dated August 29, 2017.

According to the instructions of the UT administration, GPA\SPA cannot be treated as instrument of transfer of title as per the Transfer of Property Act. No transfer of title or mutation will be carried out merely on the basis of GPA\SPA. Not only that, the wills executed along with such GPA\SPA will also not be considered for mutation. However, these instruments — GPA, SPA and will — can be used for getting the conveyance of the title deed registered.

The GPA transactions entered on or before October 11, 2011, will be considered only for regularisation of title\ownership in respect of any immovable property by executing deed of conveyance. The mutation already entered before the time period on the basis of GPA\SPA will not be changed due to issuance of the instructions.

The GPA\SPA executed in favour of a family members\relatives or another person for valid purposes for management of properties or to execute deed of conveyance or a land developer for developing the land will not be affected.

The administration has issued directions to concerned office of estate office, Chandigarh Municipal Corporation and Chandigarh Housing Board for ensuring that the instructions are followed in letter and spirit and action would be taken for non compliance.

Expressing displeasure over the decision, Kamaljit Singh Panchi, adviser, Chandigarh Property Consultants Association, said that the move will affect a large number of people. A large number of properties in the city have been sold on GPA and it will have an effect on them.

Over the year, owners of dwelling unit constructed by Chandigarh Housing Board (CHB) and flats in group housing societies have been transferred on GPA\SPA.

CHB has developed house schemes in different sector – Sector 29, 41, 40, 44, 43, 45, 47, Sector 38 (West) and Modern Housing Complex -- having around 64000 dwelling units. The board has also developed rehabilitation housing schemes. There are a total of 112 group housing societies—in sectors 48, 49, 50, and 51— in the city, having over 1,000 flats.