The Illegal Use and Conveyance of Property

In India, there are two laws that govern the concept of Power of Attorney (POA): the Powers of Attorney Act, 1882, and the Indian Stamp Act, 1899. The issue of POA has been a topic of discussion for a long time, particularly in relation to property transactions.

The Supreme Court (SC) has ruled that general power of attorney (GPA) has no legal sanctity, and only registered sale deeds provide any legal holding to such transactions. In fact, the SC declared property sale through power of attorney illegal in 2011, following a landmark verdict.

The rise in the use of POA coincided with the growth in the Indian property market, which began in the 1990s. This method was primarily used by two parties to short-change the law and gain an unfair advantage.

There are several key points that highlight the illegality of using power of attorney for property transactions:

* Oral cancellation of PoA has no validity.

* A power of attorney holder cannot sell property unless authorized to do so.

* If a sale deed is not executed, the POA of no consequence and action should be taken by the holder.

* Property title cannot be transferred with an unregistered sale agreement or GPA.

The Delhi High Court issued an order in 2013 regarding POA, which further reinforced the SC's verdict. Additionally, the SC's order in the Suraj Lamp Industries versus State of Haryana case had a significant impact on property sales through GPA.

In conclusion, it is essential to understand that using power of attorney for property transactions is illegal and can have severe consequences. It is crucial to follow the legal process and obtain registered sale deeds to ensure the validity and security of property transactions.

Illegal use and conveyance of property