Chandigarh property owners may get relief: UT plans regularisation of pre-2011 GPA, SPA transactions

Hundreds of Chandigarh property owners who acquired properties through general power of attorney (GPA) or special power of attorney (SPA) transactions before the Supreme Court’s 2011 ruling may soon get relief. The UT administration has finalised a policy that could allow such legacy transactions to be regularised.

“The administration has prepared a policy for permitting transfer/mutation of properties covered by such pre-Oct 11, 2011 transactions and is awaiting approval of the competent authority,” said a senior UT official.

More than 200 applications are currently pending with the Chandigarh Housing Board (CHB), while a similar number are pending with the Estate Office, officials said. If approved, the proposed policy could provide a formal mechanism to process these long-pending cases.

Why Old GPA Transactions Got Stuck

The issue dates back to the Supreme Court’s October 11, 2011 judgment in Suraj Lamp & Industries Pvt Ltd vs State of Haryana. The court held that arrangements involving an agreement to sell, GPA or Will do not, by themselves, transfer ownership of immovable property.

A registered conveyance deed is required for the legal transfer of title. Following the ruling, GPA transactions could not independently be used as the basis for mutation in municipal or revenue records.

Chandigarh subsequently tightened its procedures and clarified that a GPA or SPA could not be treated as an instrument that transfers property title.

“In practical terms, a person holding a property under a pre-2011 GPA may have possession and supporting documents but still face difficulty getting the property formally transferred in his or her name. This can hold up mutation and make subsequent sale or transfer difficult,” the official said.

Proposed Policy To Cover Pre-2011 Transactions

The administration had earlier made provisions for considering transactions entered into on or before October 11, 2011, through the execution of a registered conveyance instrument.

The proposed policy is aimed at creating a more defined process for handling such legacy cases and could provide eligible property holders with a route to complete the formal transfer of ownership.

No Relief For Fresh GPA Property Transfers

The proposed relaxation is expected to apply only to transactions entered into before the Supreme Court’s 2011 judgment. It would not allow new property transactions to be completed through GPA.

For existing holders, the policy could enable old GPA-based transactions to be converted into legally recognised registered transfers, subject to the conditions, documentation.

The move could benefit families who have held properties for years but have been unable to update ownership records. It could also make subsequent transactions, including sale, inheritance or transfer, easier once the ownership is formally recorded.

[With TOI inputs]