This is one of the biggest traps in Delhi real estate. For decades, properties were bought and sold through GPA (General Power of Attorney) + Agreement to Sell + Will - especially in unauthorized colonies and DDA flats. The Supreme Court put a full stop to this in 2011.
Supreme Court - Suraj Lamp & Industries vs State of Haryana (2011)
The Supreme Court ruled that immovable property can ONLY be legally transferred through a registered deed of conveyance. SA/GPA/Will transactions do not transfer title and cannot be treated as completed transfers. This judgment applies across India.
Delhi High Court (2024) - Partition Deed Case
The Delhi HC backed the Suraj Lamp ruling, holding that only a registered sale deed - not an agreement to sell, GPA, or receipt - can establish property title. Children who relied on GPA-based documents lost their claim.
Delhi Government Directive (2012)
Following the SC judgment, Delhi Government issued a directive to the Revenue Department asking it to allow sale and purchase of immovable properties ONLY through proper sale deed - not through GPA route.
What Happens at the SRO
- If your title chain shows GPA-based transfer, SR will question the ownership
- You cannot register a sale deed if the seller's own title is based on GPA
- The entire chain of ownership becomes questionable
- Banks will also refuse home loans on GPA-based properties
How to Avoid
If you are buying a property where the seller's title is based on GPA, insist on a proper registered sale deed from the original owner first. Get a title search / encumbrance certificate done before proceeding.