In May 2013, the Delhi High Court struck down an internal circular of the state government issued in April, 2012, which restricted property transactions through GPA.
On October 12, 2011, the apex court had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Following the order, the Delhi government had put a stop on property transactions through GPA in April last year.
“The Delhi government circular banning sale of properties on GPA was set aside by the high court in May this year. After taking the opinion of the law and revenue departments, the government finally sent the proposal to the Lieutenant Governor for his consent and notification,” a senior Delhi government official said.
The revenue department’s circular stated: “No transfer of property will take place until a clear sale deed is executed and duly registered by the executants in the office of the registrar/sub-registrar.”
Following the Delhi government order, the volume of property transaction in the city had come down drastically, as selling of leasehold properties through GPA transfers was a convenient way of such transactions.
Transaction through GPA was common for properties without a clear title.