Rama chary Rachakonda
(Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )
02 September 2021
The Supreme Court verdict, 2011
The 2011 order by the Supreme Court of India categorically states that the GPA is not an instrument of transfer when it comes to right, title and interest in an immovable property. The Court further held that power of attorney is only an agency created in favour of the recipient, also known as grantee, on behalf of the grantor. Moreover, even an irrevocable power of attorney does not have the effect of transferring title to the recipient. Therefore, GPA is not valid for the sale/purchase of a property. Transactions related to an immovable property can only be done by way of stamped and registered conveyance deed, as applicable under the respective State government Act.
In the wake of the above decision, the Apex Court directed the municipal bodies not to register properties based on the GPA documents. However, genuine transactions done through GPA would remain valid.