Supreme Court invalidates power of attorney sales

By Utsav Mukherjee, Vidhii Partners
0
1650
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The recent Supreme Court decision in Suraj Lamp and Industries Private Limited and Ors v State of Haryana and Ors invalidates the transfer of property through agreement of sale and power of attorney, except in specific genuine cases.

Utsav Mukherjee Associate Vidhii Partners
Utsav Mukherjee
Associate
Vidhii Partners

The Supreme Court came down heavily on the prevalent practice of sale through power of attorney, observing that the practice involved an agreement for sale, followed by execution of a general power of attorney in favour of the purchaser to deal with the property in any way. The net effect of such a transaction was transfer of the property to the purchaser, but without a registered instrument of sale.

This allows the purchaser to avoid the payment of a hefty stamp duty and is also used to invest black money, as there is no record of such a transaction. In the absence of any record, a vendor with an imperfect title may pass on the property to one or more purchasers, who then must pursue expensive and circuitous litigation or approach the land mafia to get their properties vacated.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Utsav Mukherjee is an associate at Vidhii Partners and can be reached at utsav.mukherjee@vidhiipartners.com.

Vidhii_Partners_logo-CMYK

Mumbai

102-A, Prathmesh Tower

Premises Co-op. Society Ltd.

Raghuvanshi Mills Compound

Senapati Bapat Marg, Lower Parel,

Mumbai 400 013, India

Tel: +91 22 4355 8555

Fax: +91 22 4355 8550

Email: vidhii.mumbai@vidhiipartners.com.

Kolkata

Ambassador Apartments,

Flat No. 13, Block B,

First Floor, 61A, Park Street,

Kolkata 700 016, India

Tel: +91 33 4001 4224

Fax: +91 33 4001 4225

E-mail: vidhii.kolkata@vidhiipartners.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link