Can A GPA Holder Register A Property In His Own Name?

In India, property ownership and transfer often involve the use of a General Power of Attorney (GPA), especially when the real owner cannot personally handle the transaction. However, one of the most common and confusing questions that arises is, can a GPA holder register the property in his own name?

This issue has long been debated in courts because many people used GPA documents to sell or transfer property informally, avoiding stamp duty and registration. The Supreme Court has now clearly defined the legal position on what a GPA holder can and cannot do.

We will Explore:

• Quick Answer
• Can a GPA Holder Register Property in His Own Name?
• When It May Be Legally Permissible
• When It Is Not Permissible
• Step-by-Step: The Proper Way to Transfer to a GPA Holder
• Why GPA Holder Cannot Register Property in His Own Name

Quick Answer

A GPA does not transfer ownership by itself.

A GPA holder can register property in his own name only if:

• The GPA document expressly authorizes self-purchase (self-dealing), or
• The principal (actual owner) executes a separate registered sale deed in favor of the GPA holder with proper stamp duty and registration.

This principle was firmly established by the Supreme Court in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011), which clarified that “GPA sales” do not convey ownership rights. A GPA merely authorizes action on behalf of the owner- it does not substitute a valid sale deed.

Can A GPA Holder Register Property In His Own Name?

A GPA holder acts as an agent of the property owner, bound by the terms written in the Power of Attorney. Whether such a person can register the property in his own name depends entirely on the authority granted in the GPA document and the consent of the principal.

When It May Be Legally Permissible

A GPA holder can legally register the property in his own name only under limited and well-defined circumstances, such as:

1. Express Authorization in the GPA
   If the GPA specifically allows the holder to purchase or transfer the property to himself, such self-dealing is valid. The language of the GPA must clearly mention that the principal has permitted the GPA holder to execute the sale deed in his own favor.
2. Separate Sale Deed Executed by the Principal
   Even if the GPA does not authorize self-purchase, the principal can execute a registered sale deed transferring the property to the GPA holder. In this case, full stamp duty and registration fees must be paid, just like any normal sale transaction.
3. After Proper Consideration is Paid
   The GPA holder must pay genuine sale consideration to the owner. Without proof of payment, the transaction may be challenged later as fraudulent or unauthorized.
4. No Conflict of Interest
   The transaction should not create a conflict between the principal’s interest and the agent’s benefit. Courts view such transactions with caution and require clear evidence that the sale was made with full consent and without undue influence.

When It Is Not Permissible

A GPA holder cannot register property in his own name in the following situations, as these go beyond the scope of authority and violate property transfer laws in India:

1. When the GPA Does Not Authorize Self-Transfer
   If the Power of Attorney only permits the holder to manage, lease, or sell the property to others, it does not automatically allow registration in his own name. Any such act would be invalid and voidable by the owner.
2. When No Sale Deed or Consideration Exists
   The Supreme Court in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011) held that a GPA sale is not a valid conveyance. Without a properly stamped and registered sale deed, no ownership rights can pass to the GPA holder.
3. When the Principal Has Not Given Free Consent
   If the GPA holder transfers property to himself without the owner’s knowledge or free consent, the act amounts to self-dealing and breach of trust. Such transactions can be challenged in court and set aside as fraudulent.
4. When Used to Evade Stamp Duty or Tax
   Courts have repeatedly frowned upon the misuse of GPAs to avoid payment of stamp duty, capital gains tax, or registration charges. Transactions made for such purposes are not only legally invalid but can also attract penalties and prosecution.
5. If the Principal Is Deceased or the GPA Has Been Revoked
   A GPA becomes void upon the death of the principal or when the authority is revoked. Any registration done after that point has no legal effect and does not convey title to the GPA holder.

Step-By-Step: The Proper Way To Transfer To A GPA Holder

Many property owners in India give a General Power of Attorney (GPA) to trusted family members or associates to manage, sell, or maintain their property. However, if the intention is to transfer ownership of the property to the GPA holder, it must be done through a properly executed and registered sale deed. A GPA alone cannot convey ownership rights.

Below is the correct, legally accepted process to complete such a transfer safely and effectively.

1. Draft a Proper Sale Deed

The first step is to prepare a registered sale deed clearly stating that the property is being sold by the principal (the true owner) to the GPA holder. The document should include complete details such as:

• The description of the property (address, survey number, extent, boundaries)
• The agreed sale consideration
• The intention of both parties to transfer ownership
• Reference to the existing GPA (with date and registration details)

This ensures that the transfer is based on mutual understanding and leaves no ambiguity about ownership rights.

2. Pay Full Stamp Duty and Charges

The sale deed must be duly stamped according to the market value of the property as prescribed by the Stamp Act of the respective state. Stamp duty is a legal tax, and payment of the full amount is essential for the document to be valid in court.
Additionally, registration charges and other applicable fees must also be paid at the time of registration.

3. Register the Sale Deed with the Sub-Registrar

The next step is to get the sale deed registered at the Sub-Registrar’s Office in the area where the property is located. This step gives the transaction its legal validity.
Both parties should appear before the Sub-Registrar along with their original identity proofs, photographs, and witnesses. The registration must be done within the time limit prescribed under the Registration Act, usually within four months from execution.

4. Obtain the Owner’s Free and Clear Consent

The sale must be executed with the free and informed consent of the property owner. The principal should sign the sale deed willingly after confirming receipt of the sale consideration.
If the owner is unable to attend registration personally, the GPA holder may execute the deed on behalf of the principal, provided the GPA explicitly authorizes such action.

5. Update Mutation and Revenue Records

After registration, the GPA holder, now the buyer, should apply to mutate the property records in their own name at the local municipal or revenue office.
Updating mutation ensures that future property tax, utility, and revenue bills are generated in the correct owner’s name. This also helps establish a clear ownership trail.

6. Maintain a Complete Record of All Documents

To avoid future disputes, both parties should keep copies of all related documents, including:

• The registered GPA
• The registered sale deed
• Payment proofs like bank transfer receipts or cheques
• Stamp duty receipts and registration certificates

These records will serve as strong legal evidence of a genuine transfer if any question arises later.

7. Avoid Using GPA Alone for Sale or Ownership Transfer

It is important to remember that a GPA by itself cannot transfer ownership. The Supreme Court in the Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011) judgment made it clear that property ownership can only pass through a registered sale deed, gift deed, or will, not by GPA or agreement to sell.

Following this structured and transparent process helps ensure that the property transfer from the owner to the GPA holder is legally valid, enforceable, and recognized by all authorities. It also protects both parties from potential fraud, tax complications, or title disputes in the future.

Why A GPA Holder Cannot Register Property In His Own Name?

A General Power of Attorney (GPA) is a legal instrument that gives one person the authority to act on behalf of another, but it does not create ownership rights in the property. The GPA holder functions as an agent, not as the owner. This distinction is critical because it limits what the GPA holder can legally do, especially when it comes to transferring ownership to himself.

There are several legal and practical reasons why a GPA holder cannot directly register property in his own name unless proper procedures are followed.

1. GPA is an Agency, Not a Conveyance

Under the Indian Contract Act, 1872, a GPA only authorizes the holder to act as an agent for the owner. The ownership of the property remains entirely with the principal (true owner).
Therefore, a GPA holder cannot claim ownership or execute a sale in his own favor unless there is a separate registered sale deed transferring the title to him.

2. Supreme Court Clarification in the Suraj Lamp Case

In the landmark case Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011), the Supreme Court held that:

“Transactions of the nature of GPA sales do not convey title and do not amount to transfer of ownership.”

The Court made it clear that selling or registering property based solely on a GPA is not legally valid. Such documents can only authorize the holder to act, but cannot replace a registered sale deed, gift deed, or will that actually transfers ownership rights.

3. Protection Against Self-Dealing and Fraud

Allowing a GPA holder to register the property in his own name without clear authorization could lead to self-dealing, conflict of interest, and fraudulent transfers. The law requires that such transfers be done transparently, with the free consent of the owner and payment of proper consideration.

4. Prevention of Stamp Duty and Tax Evasion

Before the 2011 judgment, GPA sales were often used to evade stamp duty, registration fees, and capital gains tax. The Supreme Court disapproved of this practice, noting that property transfers must always be properly stamped and registered to protect revenue interests and ensure transparency.

5. GPA Becomes Invalid Upon Death or Revocation

A GPA is a revocable authority and automatically becomes void upon the death of the principal. This means that if the owner dies before executing a sale deed, the GPA holder has no power to transfer the property, including to himself.

6. Legal Ownership Requires Registration and Consideration

For any property transfer to be legally valid, two conditions must be met:

1. A registered document (sale or gift deed) under the Registration Act, 1908.
2. Payment of lawful consideration or clear intention to transfer ownership.
   A GPA transaction alone does not satisfy either of these requirements, which is why a GPA holder cannot claim ownership just by virtue of holding the power of attorney.

Conclusion

In conclusion, a General Power of Attorney (GPA) only gives the holder the right to act on behalf of the property owner, not to claim ownership. The GPA holder can register property in his own name only when the owner expressly authorizes it through a valid clause in the GPA or through a separate registered sale deed executed in his favor. The Supreme Court in the Suraj Lamp & Industries Pvt. Ltd. (2011) case made it clear that GPA sales are not valid transfers of ownership. A property can be legally transferred only through a properly stamped and registered sale or gift deed. For both the principal and the GPA holder, following the correct legal process ensures transparency, authenticity, and long-term protection of ownership rights. Any shortcut or informal transfer can lead to serious legal disputes or cancellation of the transaction in the future.

Disclaimer: This blog provides general information only and is not legal advice. Property laws are complex. For advice tailored to your specific situation, please contact our expert lawyers or a qualified legal professional.