NO TRANSFER OF PROPERTY IN INDIA USING POWER OF ATTORNEY

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In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court of India held that the GENERAL POWER OF ATTORNEY method of immovable property sales is not a valid form of transfer of property.

A three-judge bench presided over by Justice R. V. Raveendran in the matter of Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr. said that property can be lawfully transferred only through registered sale deeds.

"A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA.The apex court said there can be no mutation of property in municipal and revenue records on the basis of such documents.

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