New Delhi: With the Delhi BJP government initiating a demolition and road-widening drive in areas falling under Chief Minister Rekha Gupta’s assembly constituency, a large number of affected residents hold properties on General Power of Attorney (GPA) documents. Understanding the legal status of such papers is crucial, as compensation, ownership recognition and rehabilitation depend entirely on valid title under law.
FREQUENTLY ASKED QUESTIONS (FAQs)
1. What is a General Power of Attorney (GPA)?
A General Power of Attorney is a legal instrument through which one person (the owner or “principal”) authorises another person (the “agent” or GPA holder) to act on their behalf. Actions performed by the GPA holder are deemed to be done in the name of the principal—but ownership itself does not transfer.
2. Is a GPA equivalent to a registered sale deed?
No.
Neither the Registration Act nor the Stamp Act recognises a GPA as equivalent to a sale deed. A GPA only grants authority to act; it does not transfer ownership or title in immovable property.
3. What are the risks of owning property through GPA/Agreement to Sell/Will?
Properties held through GPA-based transactions carry several risks:
- They do not constitute a legal transfer of title.
- The original owner can legally sell the property to someone else using a registered sale deed.
- There is a higher risk of forgery, cheating and multiple claims on the same property.
- Such transactions may attract scrutiny related to unaccounted money.
- GPA holders are at a disadvantage in courts during ownership disputes or demolition proceedings.
4. What did the Supreme Court rule in the Suraj Lamps case (2011)?
In Suraj Lamps & Industries Pvt Ltd vs State of Haryana (11 October 2011), the Supreme Court categorically held that:
- Property ownership cannot be transferred through GPA, Agreement to Sell or Will.
- Only a registered sale deed or conveyance deed constitutes valid transfer of title.
This ruling is the legal foundation used by authorities while assessing ownership during demolition or compensation decisions.
5. Are GPA, Agreement to Sell or Will still allowed to be registered?
Yes, but with limitations.
Such documents can still be registered for legitimate purposes, such as:
- Managing property affairs
- Granting authority to family members
- Development agreements with builders
However, these documents do not confer ownership rights, either individually or collectively.
6. What happens to GPA properties registered before 11 October 2011?
GPA transactions executed before the Supreme Court judgment are not automatically invalidated. However:
- Ownership still does not stand unless regularised.
- Such holders are expected to convert GPA holdings into registered sale deeds wherever possible.
7. Can a GPA holder sell property today?
No.
After 11 October 2011, any transfer of immovable property must be through a registered sale deed only. GPA holders cannot legally sell or transfer ownership.
8. Why does GPA ownership matter during demolition drives?
During demolition or road-widening projects:
- Authorities recognise only legally valid ownership.
- Compensation is paid only to owners with clear title, typically established through registered sale deeds.
- GPA holders may face difficulty proving ownership, even if they have lived on the property for decades.
9. Does possession or long residence guarantee compensation?
Not necessarily.
While long-term residence may be considered in policy decisions, legal ownership remains the primary criterion for compensation under existing laws. Possession alone does not override title requirements.
10. What is the broader impact of the Supreme Court ruling?
The ruling aims to:
- Reduce property fraud and multiple ownership claims
- Curb black money in real estate
- Lower prolonged property litigation
- Ensure transparency in compensation and redevelopment
- Increase lawful revenue through proper registration
11. What should GPA holders do now?
Legal experts advise GPA holders to:
- Gather all supporting documents (electricity bills, water bills, tax receipts)
- Approach authorities during verification camps
- Seek legal advice on regularisation through conveyance deeds, where possible
- Understand that final decisions may involve policy and administrative discretion
12. Who takes the final call in demolition-related ownership disputes?
While documents are collected and verified by officials, the final decision is taken at the administrative and policy level, based on legal validity, public purpose, and government guidelines.
Bottom Line
As Delhi’s demolition and redevelopment drives gather pace, GPA-based ownership is a critical vulnerability for thousands of residents. Knowing the legal position is essential—not just for compensation, but for protecting long-term housing rights.
