GPA ban is lifted ahead of election
With an eye on the upcoming Assembly elections slated in November this year, the city government on Friday decided to lift the ban on transaction of properties through general power of attorney (GPA). The decision will provide relief to lakhs of residents of group housing societies.
Chief minister Sheila Dikshit said that considering the difficulties faced by residents of the city, the government has decided to lift the restriction on transaction of properties through GPA. The ban was imposed by the city government in the year 2012.
“We have decided to allow transaction of properties through GPA. The order lifting the restriction on GPA transaction will come into effect from Monday,” Ms Dikshit told reporters here.
Following a Supreme Court order on property transactions, the Delhi government in April last year had put a stop on property transaction through GPA. The Supreme Court had on October 12, 2011 had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. The Delhi high court on May 5 had quashed the Delhi government order banning property sale through GPA.
Following the Delhi government order, volume of property transaction in the city had come down drastically as selling of leasehold properties through GPA transfers was a convenient way of such transactions. Transaction through GPA was common for properties not having a clear title. Officials in the revenue department had said the government’s revenue collection had also come down following the ban on property transactions through GPA.
The lifting of the ban on GPA-based transactions will help in sale and purchase of properties in unauthorised colonies where there is no clear title.
The city government had regularised 895 unauthorised colonies in September last year and the decision to lift transaction through GPA will allow property sale and purchase in those settlements, said officials.
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