New Guidelines Target Stamp Duty Evasion
To curb stamp duty evasion and crack down on fraudulent property transactions, the Delhi Government on Wednesday announced stricter scrutiny of property documents executed through General Power of Attorney (GPA), directing Sub-Registrars to closely examine such transactions before registration.
Under the new guidelines issued on the directions of Chief Minister Rekha Gupta, all GPAs executed in favour of persons other than close blood relatives will now be mandatorily referred to the Collector of Stamps to determine whether they attract the full stamp duty applicable to a sale deed.
Disguised Transactions Under Scrutiny
The move comes amid concerns that some property transactions are being disguised as GPAs to avoid paying higher stamp duty. Chief Minister Gupta stated, "It has been observed that in several cases, documents are registered merely as a GPA by paying nominal stamp duty, even though they effectively transfer ownership and possession of the property." She added that such practices result in revenue loss and would no longer be tolerated.
Every GPA presented for registration will now undergo detailed scrutiny by the Sub-Registrar. Officials have been directed to examine whether the document involves monetary consideration, transfer of possession, irrevocable powers, or permanent authority to sell, gift, mortgage, or otherwise transfer the property.
Referral to Collector of Stamps
GPAs executed in favour of anyone other than parents, spouse, son, daughter, brother, or sister will no longer be registered directly. Instead, they will be referred to the Collector of Stamps for adjudication to determine whether the document is merely a power of attorney or, in substance, a conveyance requiring full stamp duty.
The Collector of Stamps has been directed to issue a reasoned order within 30 days, with the timeline extendable to a maximum of three months in exceptional cases. Registration will not be permitted until the adjudication is completed and the applicable stamp duty has been paid.
Strict Action for Non-Compliance
Warning officials against bypassing the new procedure, Gupta said strict disciplinary action would be taken against any Sub-Registrar found registering such GPAs without referring them to the Collector of Stamps. To improve transparency and oversight, the government has also directed every Sub-Registrar's office to maintain a separate register of such cases and submit monthly reports. An online tracking mechanism is expected to be developed within a month to monitor referrals and adjudications.
