Freehold of dda flat
P.C. Joshi
(Querist) 20 March 2017
This query is : Resolved
Dear Learned members,
This is a personal query of one close friend relating to freehold of a DDA flat.
The matter is like this.
My friend purchased an LIG Flat in Delhi under un registered agreement to sell/GPA in 2003 from the second party which he now wants to get freehold from DDA under the relaxed scheme launched by DDA in 2014 for conversion of unregistered ATS into freehold.The said scheme, requires all the agreements to sell after executed 24.09.2001 to be registered from the registrar.I have visted with my friend to the concerned SDM office where the concerned clerk calculted duty @8% on the value of agreement to sell exceuted after 24.09.2001(both are excuted in June 2003)and also told us that there will be a penalty upto 10times of the duty at the discretion of the SDM.But the DDA says that the stamp duty should be paid on circle rate. I told this to SDM office guy, he says the duty will be on the consideration amount mentioned ion the ATS as the circle rate was not applicable then in 2003.We are at a delima who is right whether SDM ofice or DDA guy. But I feel it's a state subject so DDA should not question the duty calculation of the Delhi Govt SDM office.
The second issue is that the DDA guidelines says that the unregistered agreement to sell executed should be registered with the concerned Sub-registrar.The SDM office says that there is no registration involved in this case only the payment of stamp duty which has not been paid earlier will have to be paid. he says that we will have to buy the stamp papers as per the value calculted by SDM which will be signed and stamped by them and that will be the documents which will be submitted to DDA with application and other documents for free hold.I have visited the sub registrar office there one person told us that they do registration of all current documents and all old cases are done by SDM.But we are confused as which one is saying correct.
can anyone please throgh some light on above two issues. Shall be highly grateful so that we donot stuck in DDA office.
Thanks
Prakash
anand
(Expert) 22 March 2017
there is no role of sub registrar of assurance or the SDM at this stage and you shall go to DDA as the property shall get leasehold to freehold from their office and second it is not necessary that Agreement to sell shall be registered with Sub-registrar, the requirement is you shall have GPA, ATS and receipt and affidavits and you can get the property freehold in your favour.
P.C. Joshi
(Querist) 27 March 2017
Dear Anand,
First of all thanks for answering my query. Perhaps you may be aware that in 2011 Supreme COurt of India in a judgement held that after 24th September 2001 all the transactions through unregistered GPA or ATS in Delhi are not legal that's why DDA banned the freehold of properties acquired by GPA or ATS which are unregistered. Later in 2014 central Govt. considering the issue involving a large number of people amended the rules and issues fresh guidelines for conversion of leasehold to free hold. The relevant clause of the DDA Slaient Features of the Scheme read as under:
para 8(d) The General Power of AGreement/Agreement to Sell executed from 24.09.2001 onwards, must be registered with the Sub-Registrar.
Now please share your views.
I need clarification on the following points too.
1. In case of Agreement to sell who is called first party and who is second party.
I believe the seller is the first party and purchaser is the second party. Is my thinking correct?
E stamp paper is to be purchased from Stock Holding Corproation of India or a nationed bank. The Stockiholding application form requires to fill the name of first party, second party, stamp duty purchased by and stamp duty paid by(first party or second party)
2. Now that I have to pay the stamp duty on both the agreement to sell executed after 24th Sep 2001.As far as the second ATS(in which I am the purchaser there is no problem I am the purchaser of stamp paper and also the payer of the duty. But what about the first ATS in which I am not a party but I am paying the duty to get the same registere in my name. So If I fill my name as prchser of stamp paper and tick the second party under the col. stamp duty paid by is it legal ok.I think so, because I am the one who is interesed in the property and paying the duty. The purpose of DDA requiring stamp duty is to ensure that no revenue loss has occurred to the State Govt.
Learned members please revert. I's urgent please.
