Property Registration – Delhi Tightens GPA Scrutiny to Curb Stamp Duty Evasion
Property Registration – The Delhi government has introduced stricter checks for immovable property documents registered through General Power of Attorney (GPA), aiming to prevent stamp duty losses, curb fraudulent transfers and reduce the scope for land-related malpractice. The revised directions have been issued to all Sub-Registrars and are to be enforced immediately.
Government Flags Misuse of GPA Documents
Chief Minister Rekha Gupta said on Wednesday that several property-related documents were being registered as GPAs after payment of nominal stamp duty, despite containing clauses that effectively resemble sale agreements. These documents may include provisions related to sale, possession and transfer of ownership, which can make them comparable to property conveyance transactions.
According to the government, registering such documents under GPA provisions can result in stamp duty evasion. The new framework is intended to ensure that documents are assessed according to their actual legal and financial nature rather than only their title.
Sub-Registrars Directed to Conduct Detailed Review
Under the updated instructions, every GPA submitted for registration will undergo closer examination at the Sub-Registrar’s office. Officials will review whether the document includes any financial consideration, transfer of possession, irrevocable authority or permanent rights connected with selling, gifting, transferring or mortgaging a property.
The scrutiny will focus on whether a GPA is genuinely limited to authorising someone to act on behalf of the property owner or whether it carries conditions normally associated with a sale deed. Where the document appears to create ownership-related rights, authorities may require payment of stamp duty applicable to a conveyance deed.
Referral Required for Non-Family GPA Holders
The government has also changed the process for GPAs executed in favour of people who are not close blood relatives. A Sub-Registrar will not be allowed to directly register such documents when the attorney holder is outside the immediate family.
For this purpose, close relatives include parents, spouse, son, daughter, brother and sister. GPAs made in favour of any other individual must be sent to the Collector of Stamps, who will decide the appropriate stamp duty liability before registration can proceed.
Collector of Stamps to Decide Duty Within 30 Days
The Collector of Stamps has been directed to issue a reasoned written order within 30 days of receiving a referred document. The order will determine whether the instrument is a regular GPA or whether it should be treated as a conveyance or sale deed for stamp duty purposes.
In exceptional circumstances, the period may be extended by up to three months. Until the Collector gives a decision and the required duty is paid, the document cannot be registered.
The government has warned that action will be taken against any Sub-Registrar who registers such a GPA without referring it to the Collector of Stamps. The move places greater responsibility on registration officials to ensure that property documents are processed in accordance with stamp laws.
Monthly Records and Online Monitoring Planned
To improve accountability, every Sub-Registrar’s office will maintain a separate register for GPA cases requiring review. Monthly reports on these matters will also be submitted to the authorities.
Chief Minister Gupta has further instructed officials to create an online tracking system within one month. The platform is expected to help monitor referrals, stamp duty decisions and registration status across offices.
The government said the revised procedure will help secure public revenue while offering greater protection to property owners and buyers from disputes arising from defective or improperly registered documents.