Crackdown on stamp duty evasion via GPAs: Delhi CM directs sub-registrars to intensify scrutiny

Chief Minister Rekha Gupta stated that every General Power of Attorney (GPA) document presented for registration in Delhi will now undergo scrutiny by sub-registrars. This scrutiny will focus on whether the document mentions any monetary consideration, provides for handing over property possession, is irrevocable, or grants permanent authority to sell, gift, transfer, or mortgage the property.

According to Rekha Gupta, GPAs executed in favour of persons other than blood relations (parents, spouse, son, daughter, brother or sister) will no longer be registered directly by the sub-registrar. Such cases will be mandatorily referred to the concerned Collector of Stamps for adjudication to determine the appropriate stamp duty payable.

Advertisement

She made the stringent decision to curb revenue loss in immovable property registration, crack down on land mafias and fraud, and safeguard government revenue. Following her directions, strict guidelines have been issued for detailed scrutiny of property-related documents executed through General Power of Attorney (GPA).

All sub-registrars must ensure strict compliance with these instructions, effective immediately.

According to Gupta, it has been observed that in several cases, documents are registered merely as a ‘GPA’ by paying only a nominal stamp duty, even though they contain provisions relating to the sale of property, handing over possession and transfer of ownership.

This amounts to direct stamp duty evasion and will no longer be tolerated under any circumstances, the CM warned.

According to her, the Collector of Stamps must pass a reasoned written order on every such reference within 30 days. The order will determine whether the document is merely a General Power of Attorney or if it attracts the full stamp duty applicable to a Conveyance Deed (Sale Deed).

Under exceptional circumstances, this period may be extended up to a maximum of three months, she said, adding that no such GPA will be registered unless the Collector of Stamps has passed the order and the appropriate stamp duty has been paid.

The CM clarified that any sub-registrar who registers such a GPA in violation of these rules without referring it to the Collector of Stamps, will face strict disciplinary action.

Every sub-registrar’s office will maintain a separate register for such cases and submit monthly reports, to ensure accountability and transparency.

She also directed that an online tracking mechanism be developed within one month to monitor all such cases.