Tuesday, May 7, 2013

"GPA" Transaction- valid ! (Del..HC)

Top-up
Fin. Exp.

www.financialexpress.com/news/govt-uturn-gpa-okay-for.../1145275
Jul 23, 2013 - Govt U-turn: GPA okay for property registration ... immovable property through a GPA by having “misconstrued” an earlier Supreme Court order.


Bricks & walls: Govt U-turn: GPA okay for property registration

bricksandwall.blogspot.com/.../govt-u-turn-gpa-okay-for-property.html
Jul 24, 2013 - Govt U-turn: GPA okay for property registration. The Financial Express. The Delhi government on Monday issued a new notification to allow ...



Impromptu >
On the first blush, the write-up one just now happen to  stumble on, if read in isolation, to one's understanding, instead of being of help in at all bringing about any clarity, merely rendered the already obtaining  confusion, worse confounded.
Be that as it should, it is the concluding paragraph which appears to set out the finally conceded correct understanding of the SC verdict.
In case any of those legal cum property experts but truly competent  were to entertain any doubt or reservation, should come out openly with a well reasoned opinion, for the benefit of the concerned public / the common good.

LCI
Sept. 26

Horrid Stories!>

Rgistered gpa,registered irrevocable gpa,notarised gpa,notarised irrevocable gpa - by navin
sir there is a whole lot of confusion after the supreme court verdict b/w registered gpa,registered irrevocable gpa,notarised gpa,notarised irrevocable gpa.
few sub registrar are executing the sale deed even on notarised gpa {on 100 rs stamp paper}even today after supreme court verdict.are these sale deed illegal & null & void?
2.why cant all opt for notarized gpa & save stamp duty?
3.what is the use of notrizing a gpa & registering a gpa???????kindly help us out in the whole mess of gpa confusion........

  • Notrised gpa for property registration - by navin
    Is it compulsory to get a Power of Attorney attested by a Sub Registrar if it has already been attested by Magistrate or Notary, under which documents are signed by the agent?
  • Notrised gpa for property registration - by navin
    Is it compulsory to get a Power of Attorney attested by a Sub Registrar if it has already been attested by Magistrate or Notary, under which documents are signed by the agent?
AT

<previous
(ON STAMP DUTY) >


2. Question asked by Mr. Kamlesh Lakshmanan from Bangalore, India:
I have booked an under construction property (flat) in electronic city Bangalore which costs 40 lakh, the builder is now requesting to have the sale agreement for which he is asking for 20,000/- Rs towards e-stamping, the question I have is : for stamp duty payable on sale agreement (without possession) is it 1% or 0.1%.
Also he suggested that as per Karnataka stamp act, 1957 the stamp duty payable on sale agreement (without possession) is 1% on the market value equal to the amount of consideration subject to a maximum of rs.20,000/-.
Thanks
Kamlesh Lakshmanan
Vatsala Answers:
It is 1% of the value in the sale agreement subject to an upper limit of Rs. 20,000/- This will be refunded if the value in the sale deed to be registered later is the same as that in the agreement.
  • Stamp Duty and Registration – Law & procedural aspects - Indian ...

    www.indianrealestateforum.com/.../22402d1361011825-maharashtra-ho...
    stamp paper of the required amount can be purchased and agreement made on them, which is another way of paying stamp duty. Stamp vendors sell stamp ...
  • Un-registered flat owners liable for stamp duty at market rate ...

    www.business-standard.com/.../un-registered-flat-owners-liable-for-stamp-d...
    Mar 20, 2013 – Flat owners who have paid stamp duty but not registered later will be ... has said if proper stamp duty is paid on a registered agreement to sell, ...


  • Stamp Duty Calculator

    www.ask.com/Stamp+Duty+Calculator
    Search for Stamp Duty Calculator. Look Up Quick Results now!
    Ask.com has 4,767 followers on Google+

    http://www.lawyersclubindia.com/forum/STAMP-DUTY-IN-CAS...
    agreement to sell is with given possession or not given,. if possession given than stamp duty is payable at as per dicided by goverment rate ...

    http://www.karunadu.gov.in/karigr/modeldeeds/agreementd.htm

    1. State wise stamp duty rules for eForm 1, Memorandum of Association

      www.mca.gov.in/MCA21/dca/efiling/eStamp_rate.pdf

      Stamp duty rules for Form 1, MoA, AoA, and Form 5. Amount in Rupees ... 2,50,00,00,000/-, No Stamp duty shall be payable. Rs. 240 crores) and not on. Rs. 60 crores.... 500 0.5% of authorised capital. 0.5% of ... Karnataka (companies having ...

    2. Stamp Duty & Registration Fee - Government of Karnataka

      www.karnataka.gov.in/karigr/stampdutyregistration/default.htm

      Oct 16, 2012 – ... till 17/10/2012.) Levy of Stamp Duty and Registration Fee on Some Important Documents at a Glance ... Article No. under which Registration Feespayable. Amount in .... 30(1)(i). @ 0.5% on the total rent paid max.500 ...
    dpal.kar.nic.in/34%20of%201957%20(E).pdf

    1957: KAR. ACT 34]. Stamp. 491. THE KARNATAKA STAMP ACT, 1957. ARRANGEMENT OF SECTIONS. Statement of Objects and Reasons. Sections: ...

    1. [PDF]

      KARNATAKA ACT NO. 15 OF 2012 (First published in the ... - kuidfc

      www.kuidfc.com/.../The%20Karnataka%20Stamp%20ACT%202012.pdf

      THE KARNATAKA STAMP (AMENDMENT) ACT, 2012 ~ ... Whereas it is expedient further to amend the Karnataka Stamp Act, 1957 (Karnataka Act 34 of. 1957) ...

    2. KAVERI - Karnataka Valuation And e-Registration

      www.karnataka.gov.in/karigr/

      Oct 31, 2012 – Exemption of Stamp Duty and Registration Fee on acquiring farmers land · Karnataka Stamp(Amendment) Act 2012 · Amendment of ...
    <><><><>

    <previous

    www.taxmann.comTuesday, May 7, 2013
    Taxmann Daily
    A Tax & Corporate Laws Daily

    Properties can be sold on power of attorney; SC’s observation in Suraj lamp’s case not applied to genuine transactions
    The observations of the Supreme Court in the case of Suraj Lamp are not intended to be applied to the cases of genuine transactions of transfer of immovable property through GPA. As long as the transactions are genuine, the sub-registrar cannot deny to register the GPA and Will.
    1) Government of NCT Delhi had issued a circular, dated 27.04.2012 which was claimed to be issued in pursuance of the Supreme Court’s Judgment in the case of Suraj Lamp & Industries (P.) Ltd. v. State of Haryana [2011] 14 taxmann.com 103 (SC);
    2) The circular provided that on the basis of a GPA, a Will and Agreement to Sell in respect of an immovable property a conveyance cannot be executed, i.e., no transfer of property will take effect unless and until a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ sub-Registrar;
    3) The petitioner challenged the constitutional validity of the said circular.
    The Delhi High Court held in favour of petitioner as under:
    1) The circular clearly misconstrued the observations of the Supreme Court in the case of Suraj Lamp (supra);
    2) In Paragraph 27 of the said judgment, the Supreme Court provided that the observations in this case were not intended to affect the validity of sale agreements and power of attorney executed in case of genuine transactions; (?)
    3) The Supreme Court provided that a person may give a GPA to his spouse, son, daughter, brother, sister or a relative to manage his affairs  or to execute a deed of conveyance.(?) A person may enter into a development agreement with a land developer or a builder for developing the land and in that behalf execute an agreement of sale and grant a power of attorney empowering the developer to execute agreements of sale or conveyances in favour of prospective purchasers;
    4) Thus, the observations of the Supreme Court regarding GPA and Will transactions were not intended to apply to bona fide and genuine transactions of immovable properties. As long as the transaction was genuine, the same would have to be registered by the sub-Registrar;
    5) Therefore, the directions contained in the impugned circular were quite contrary to the observations made by the Supreme Court. Accordingly, the same was to be set aside – PACE DEVELOPERS AND PROMOTERS PVT. LTD V. GOVT. OF NCT THROUGH ITS SECRETARY [2013] 33 taxmann.com 99 (Delhi)
    AT News @
      <><> Property Can be Sold on General Power of Attorney : Delhi HC
      <>     Property sale on power of attorney allowed in Delhi: High Court

    EXCERPTS:

    >6.1 A bare reading of the aforesaid extract would show that the respondents have issued across the broad a directive to all Registrars and Sub-Registrars not to register any conveyance vis-a-vis an immovable property which is based on a GPA, Will or Agreement to Sell. In my view, this direction clearly misconstrues the observations of the Supreme Court made in paragraph 27 of the judgment in the case of Suraj Lamp & Industries (P) Ltd. The said observations being relevant are extracted hereinbelow:
    "....27. We make it clear that our observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance. A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a power of attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plots of land or undivided shares in the land relating to apartments in favour of prospective purchasers. In several States, the execution of such development agreement and powers of attorney are already regulated by law and subjected to specific stamp duty. Our observations regarding "SA/GPA/Will transactions" are not intended to apply to such bona fide/ genuine transactions..."
    6.2 Quite clearly, the Supreme Court has not said that in no case a conveyance can be registered by taking recourse to a GPA. As long as the transaction is genuine, the same will have to be registered by the Sub-Registrar. There is distinctly a specific reference to the fact that, a person may enter into a development agreement with a land developer or builder for development of a parcel of land or for construction of apartments in a building, and for this purpose a power of attorney empowering the developer to execute sale agreements, can be executed." <

    SG

    Property can be sold on GPA and Agreement to Sell – HC
    Impromptu:

    To one’s recollection, this is not-a-commonly-come-across instance; that is, only rarely, that a HC has been obliged to give its own reading and interpretation of certain ‘observations’ made in a SC judgment. In the nature of things, therefore, it can only be expected that the issue against the validity of the impugned circular, wholly or partly, would require to be clarified and finally ruled by the SC itself.

    In the interim, however, going by one’s own individual understanding, the entire controversy, in substance ( though not brought out in so many words), that is begging for clarity, is  centered or revolves on the basic question as to whether, for stamp duty purpose, both (a) the chargeable rate, and (b) more importantly, the chargeable value, under an ‘agreement to sell’ have to be taken to be the same as those required to be taken under a ‘sale agreement’ (final conveyance).

    For this purpose, the relevant portion of the observations of the SC, as cited by the HC itself, seems to provide a helpful clue; that reads, : “…In several States, the execution of such development agreement and powers of attorney are already regulated by law and subjected to specific stamp duty…” .

    One’s reasonable and honourable guess/presumption is that, what the SC had in mind are those States which have, by an amendment of the Stamp Duty Act , made it a uniform rate. For instance, Karnataka has provided a uniform/ same rate both for ‘first instrument of conveyance’ (i.e. ‘agreement to sell’ ) and ‘conveyance’ (i.e. ‘sale deed”).

    Nonetheless, the moot but finer point that has , so far as one could see, been left open un-clarified, presumably unwittingly – anyway has no readily available categorical answer, – is this: What is ‘the value’ to which the uniform rate , even if so has been prescribed, is required to be applied. In other words, the imponderable is, – could ‘the value’ CHARGEABLE also be taken to be the same both for ‘agreement to sell’ and ‘sale deed’?

    Left to oneself, being guided by own logical and sound reasoning, the answer to the seemingly intriguing poser can be no difficult; but only an emphatic “NO”. Subject, of course, leaving it to the law experts (including those of the Government) at large; who are supposedly expected to examine in-depth and strive to come to a subjective and truly acceptable conclusion; more so, ideally, to share it, with concerned others, for further deliberation before, and to the end of, putting into statutory effect , so as to serving a common and altruistic purpose.

    (Unedited; may be contd.)

     Add-on:

    More Xcerpts :

    > 5.2 It is the contention of Mr Mohammad that the transaction between the owner Mrs Puri and the petitioner company, i.e., the builder, is in effect a transaction of sale and hence the resistance to registration of the document. Mr Mohammad says that based on the Power of Attorney, the petitioner company, which is a builder, is obviously going to sell those portions of the super-structure to prospective buyers, which fall within its share. It is stated that the rate of stamp duty, on these sale(s) will be 6%. It is, therefore, Mr Mohammad?s contention that, the same rate of stamp duty should also apply to the first leg of the transaction, which is, the transaction entered into between the owner Mrs Puri and the petitioner company, i.e., the builder.

    6. Having heard the learned counsels for the parties, in my view, some of the assertions made by the learned counsel for the respondents, at this stage, are premature. There is, as a matter of fact, no order passed by the respondents refusing registration of any document. The concern of the respondents, that the transaction is not genuine, is not borne out from any order of the respondents. What the court is called upon to examine, therefore, at this juncture, in substance, is the validity of the circular dated 27.04.2012, issued by respondent no. 2. The grievance of the petitioner, in particular, is directed towards the following directions contained in the circular dated 27.04.2012 issued by respondent no. 2:
    “….Therefore, it is again clarified to all the Registrars/ Sub-Registrars, that on the basis of a GPA, a Will, and Agreement to Sell, collectively or separately in respect of an immovable property, a conveyance cannot be executed i.e. no transfer of property will take effect until unless a clear sale deed is executed and duly registered by the executants in the office of the Registrar/ Sub-Registrar.
    Therefore, it is advised that all the Registrars/ Sub Registrars shall follow their instructions while discharging their functions under the Registration Act 1908.”

    UN-related:
    Lci
    On Forming a MC

    :Legal formation of committee

    Story from the West:

    In a society a provisional committee was formed on 22-04-12, but they have not done anything about handover take over. No transiency. No action at all and not taken any meetings etc. Ultimately on 22nd April 13, their term is over.(one year) . Society has caused loss of revenue by way of non-occupancy charges, transfers fees etc. to the great extent.Few members have the approached Dy. Director, registrar of co-op Hsg society Thane to intervene in the matter and requested to help us in forming a New Committee by arranging Elections etc. This matter is pending with tem since 26th Feb 2013 till date.
    Now few members once again came out & decided to call a meeting and form a committee.
    For this purpose they are also suggesting to contribute Rs 2000/- per member foe meeting expenses. We have about 200 + flat owners. Accordingly a huge amount would be collected which runs in to early 4Foiur Lakhs ++.Pl advise whether, (A) whether this committee would be valid??.(B)Can anyone do this collection (is it Legal)(c)They have no authority, still they are assuring the members that , this amount will be adjusted from maintenance chares payable to the society in future. (d)Is it correct & legal?
    What do you suggest, we should do ??.9th May 2013


    4 comments:

    1. Vihaan the Rhythm Yamuna Expressway Greater Noida
      :-we are happy to read your post , its a very nice and more informative...

      ReplyDelete
    2. I think this is really very well information given about Transaction- valid. Thanks for providing this information in front of me.
      2 BHK Flats for Sale in Vasant Kunj Sector-D New Delhi

      ReplyDelete
    3. In my point of view, this is really very well and informative content given about Husband of Shazia Ilmi, Delhi BJP Leader. Thanks for given this information here about this blog.
      Flats for Rent in Ashok Nagar

      ReplyDelete