JOIN USIf GPA transactions were allowed to go on, it would lead to criminalisation of real estate transactions besides allowing people to stash away their undisclosed income and assets, the apex court said and asked the union government to spell out how to curb the menace.
In a GPA transaction, a person surrenders all his rights to another person under the so-called General Power of Attoreny who in turn executes sale of the property without actually paying any stamp duty or registration fees to the government.
Such transactions are only by way of mutual agreements without getting the sale deeds registered as required under the law.
"It is the dream of every citizen to own a house or a plot of land. The citizens must be enabled by the government to do so with safety, security and without fear of litigation or defects in title," a bench of Justices R V Raveendran and J M Panchal observed, while asking the Solicitor General to appear before it at the next hearing.