Delhi tightens scrutiny of property power of attorney deals to curb duty evasion

Newdelhi,UPDATED: Jul 8, 2026 23:40 IST

Delhi Chief Minister Rekha Gupta on Wednesday ordered stricter checks on the use of general power of attorney documents in property deals, saying the move is aimed at stopping stamp duty evasion and curbing irregular practices. Under the new directions, every power of attorney executed in favour of people other than blood relations will have to be examined by the collector of stamps before it can be registered.

The Chief Minister's Office said the step is meant to prevent revenue loss in the registration of immovable properties and rein in the land mafia and irregularities at sub-registrar offices. Gupta said such cases must be decided within 30 days, with the collector of stamps determining whether the document is only a GPA or whether it should attract full stamp duty applicable to a conveyance deed, or sale deed.

Under the orders, GPA documents executed in favour of people other than parents, spouses, sons, daughters, brothers or sisters will no longer be directly registered by the sub-registrar.

"All such cases will be mandatorily referred to the concerned collector of stamps for adjudication to determine the appropriate stamp duty payable," the chief minister said. She added that the collector of stamps must pass a reasoned written order on each such reference within 30 days. In exceptional circumstances, this period can be extended up to a maximum of three months. No such GPA will be registered unless the collector of stamps has passed the order and the appropriate stamp duty has been paid, she said.

Acting on Gupta's directions, strict guidelines have been issued for detailed scrutiny of property-related documents executed through GPA, and all sub-registrars have been told to ensure immediate compliance, the CMO said.

It said that in several cases, documents are being registered only as a GPA by paying nominal stamp duty, even though they contain provisions relating to sale of property, handing over possession and transfer of ownership rights. Gupta said this practice amounts to direct evasion of stamp duty and "will not be tolerated under any circumstances".

She said every GPA document presented for registration in Delhi will now undergo detailed scrutiny by sub-registrars. During this examination, officials will check whether the document mentions any monetary consideration, provides for handing over possession of the property, is irrevocable in nature, or gives permanent authority to sell, gift, transfer or mortgage the property.

Gupta also warned that strict disciplinary action would be taken against sub-registrars who register GPAs involving monetary gains. Every sub-registrar's office will keep a separate register for such cases and submit monthly reports, while an online tracking system will be developed within a month to monitor them.

The new directions make scrutiny tougher for GPA-based property documents involving non-blood relations, with mandatory review by the collector of stamps, fixed timelines for decisions, and closer monitoring of sub-registrar offices to check stamp duty evasion.

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