Hindu reports.
The government of Tamil Nadu has proposed amendments to the Registration Act to prevent fraudulent transactions, evasion of taxes and stamp duty , writes R.L.Narayanan
Photo: M. Srinath
Changes underway: Rules relating to registration of Power of Attorney will be changed.
Recently, the Government of Tamil Nadu has proposed that the rules relating to registration of Power of Attorney will be changed and the registration of instruments of power of attorney will be made compulsory.
Further, it is proposed that the registration of these instruments shall be made only in the office of the Registrar of Assurances concerned having jurisdiction in respect of the property dealt with under the Power of Attorney is situated. Necessary a mendments to the Registration Act, 1908, are likely to be made shortly and date of notification for implementation announced.
The immediate concern for the proposed amendment is the large-scale prevalence of a system known as “Power of Attorney Sales”.
The Supreme Court has considered this terminology and the practice covered by the term in a case pending before it.
Gained acceptance
Broadly speaking, Power of Attorney Sales is the practice of registering Sale Agreement, Power of Attorney with or without Will instead of one Sale Deed or other deed of conveyance on payment of full sale consideration.
The practice has also been to register only one of the three documents mentioned above. This practice has gained acceptance in the market and also before various authorities.
It was noticed that where restrictions such as compulsory permission from the Authority concerned and where such permission was granted on the basis of payments to be made were imposed on transfer of flats, a hybrid system with a Power of Attorney Sale was effected by the allottee / holder of the Flat to avoid the procedures and fees to be paid.
Full article here
The government of Tamil Nadu has proposed amendments to the Registration Act to prevent fraudulent transactions, evasion of taxes and stamp duty , writes R.L.Narayanan
Photo: M. Srinath
Changes underway: Rules relating to registration of Power of Attorney will be changed.
Recently, the Government of Tamil Nadu has proposed that the rules relating to registration of Power of Attorney will be changed and the registration of instruments of power of attorney will be made compulsory.
Further, it is proposed that the registration of these instruments shall be made only in the office of the Registrar of Assurances concerned having jurisdiction in respect of the property dealt with under the Power of Attorney is situated. Necessary a mendments to the Registration Act, 1908, are likely to be made shortly and date of notification for implementation announced.
The immediate concern for the proposed amendment is the large-scale prevalence of a system known as “Power of Attorney Sales”.
The Supreme Court has considered this terminology and the practice covered by the term in a case pending before it.
Gained acceptance
Broadly speaking, Power of Attorney Sales is the practice of registering Sale Agreement, Power of Attorney with or without Will instead of one Sale Deed or other deed of conveyance on payment of full sale consideration.
The practice has also been to register only one of the three documents mentioned above. This practice has gained acceptance in the market and also before various authorities.
It was noticed that where restrictions such as compulsory permission from the Authority concerned and where such permission was granted on the basis of payments to be made were imposed on transfer of flats, a hybrid system with a Power of Attorney Sale was effected by the allottee / holder of the Flat to avoid the procedures and fees to be paid.
Full article here
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