Introduction
In a landmark hearing on September 2, 2024, the Supreme Court of India examined a petition demanding the public disclosure of General Power of Attorney (GPA) documents related to property transactions. The Union Government, represented by Additional Solicitor General Vikramjit Banerjee, informed the court of its intent to explore the possibility of legislative intervention to address the issues raised in the petition. The bench, comprising Justices Surya Kant and Ujjal Bhuyan, granted the government six weeks to explore legislative solutions before reconvening on October 21, 2024.
The petition challenges the current legal framework, arguing that the restrictive access to GPAs fosters corruption and prevents transparency in property-related transactions. This blog delves into the legal background, the petitioner’s grievance, and the potential legislative steps the government may take.
The Current Legal Framework
Under Section 57(3) of the Indian Registration Act, 1908, copies of General Power of Attorney (GPA) or Special Power of Attorney (SPA) documents can only be issued to the parties executing the document or their legal representatives. This provision is further fortified by Section 51(3), which classifies GPA and SPA under 'Book 4,' making them immune from public scrutiny.
The petitioner argues that this restriction hampers the public’s ability to verify the legitimacy of property transactions, leading to the misuse of GPAs by individuals without proper title to the property. It is further contended that this legal provision indirectly encourages individuals to resort to illicit means, such as bribing middlemen, to access uncertified copies of GPA documents.
The Petitioner's Grievance
The Public Interest Litigation (PIL), filed by petitioner-in-person Abishek Nath Sarvaria, raises several concerns about the opaque nature of GPA transactions in the real estate sector. Sarvaria emphasizes that denying public access to GPA documents results in:
Corruption: Middlemen offer uncertified GPA copies for a fee, exploiting individuals who seek legitimate access to these documents.
Property Fraud: Restricting public scrutiny of GPAs allows individuals without clear property titles to exploit loopholes in the system.
Transparency: Unlike sale deeds, which are accessible to the public, GPA documents are not. This discrepancy limits transparency in property-related transactions, leading to a higher risk of fraud.
The petitioner also argues that the denial of GPA copies is in direct violation of Section 22 of the Right to Information (RTI) Act, 2005. The RTI Act grants the right to public information, superseding any conflicting legal provisions in other laws, including the Registration Act.
What Does the Petitioner Seek?
The petition requests the following reliefs from the court:
A declaration that any GPA related to immovable property should be open to public inspection or issued as a certified copy, just like sale deeds, under the Indian Registration Act, 1908.
A ruling that GPAs related to immovable properties can be obtained through an application under the RTI Act, 2005.
Any other orders the court deems necessary to ensure justice and transparency in property transactions.
The Union Government’s Stand
In response to the petition, the Union Government requested six weeks to explore whether a legislative amendment is necessary to address the petitioner’s concerns. This step hints at a possible shift in the legal landscape governing GPA transactions, potentially allowing greater transparency and public access to these critical documents.
What’s Next?
As the Supreme Court adjourned the matter to October 21, 2024, all eyes are on the Union Government’s exploration of legislative interventions. If the government proposes an amendment to the Indian Registration Act, 1908, or any related laws, it could mark a significant step towards curbing property fraud and enhancing transparency in property transactions across India.
Conclusion
The petition challenging the immunity of GPA documents from public scrutiny has brought a crucial issue to the forefront: the need for transparency in property transactions. By allowing public access to GPA documents, the Indian legal system could take a significant step towards reducing corruption and promoting accountability in real estate dealings. As we await the Union Government’s next move, the potential for legislative reform could reshape the way property transactions are conducted in India.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The views expressed herein are based on publicly available information and ongoing judicial proceedings. Readers are encouraged to consult legal professionals for specific advice related to property law and related matters. Best Regards,
Eco Space Realtors Team
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