Explore the recent property law changes in Uttar Pradesh: outsiders now face a 7% stamp duty on power of attorney property transfers, aiming to curb evasion
Yogi Government Tightens Property Transfer Regulations
In a significant move to curb property-related fraud, the Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has announced a new regulation targeting power of attorney property transfers. The decision, made during a cabinet meeting on October 10, 2023, mandates that outsiders selling property under power of attorney must pay a stamp duty of seven percent of the circle rate. This initiative is a response to the widespread practice of property transactions being conducted via power of attorney, allowing builders and sellers to evade stamp duties.
Stamp Duty Evasion Deterrence
Stamp and Court Fee Registration Minister Ravindra Jaiswal emphasized the need for this regulation, stating that power of attorney had previously been exempt from stamp duty, leading to rampant evasion. The new rule aims to put a halt to this practice, ensuring that property transactions are conducted transparently and legally. From now on, individuals with no blood relation to the property owner must pay the seven percent stamp duty, significantly impacting property deals worth crores that previously required only a nominal fee of Rs 100.
Understanding Power of Attorney
Power of Attorney, a vital legal document, grants another individual or organization the authority to make decisions regarding a person’s property, such as selling it or managing finances, in their absence. However, it’s crucial to note that this does not confer ownership; it merely grants decision-making rights in the owner’s absence. This authority is only valid when the actual owner is not present.
These new regulations mark a significant step forward in ensuring the integrity of property transactions in Uttar Pradesh. By imposing a seven percent stamp duty on power of attorney property transfers, the government aims to eliminate fraudulent practices, fostering a more accountable and transparent real estate market in the state.