SURAJ LAMP AND INDUSTRIES PVT LTD Vs. STATE OF HARYANA

JUDGEMENT

(1.) By an earlier order dated 15.5.2009 (reported in Suraj Lamp and Industries Pvt. Ltd. v. State of Haryana and Anr., (2009) 7 SCC 363 we had referred to the ill -effects of what is known as General Power of Attorney Sales (for short GPA Sales) or Sale Agreement/General Power of Attorney/Will transfers (for short SA/GPA/WILL transfers). Both the descriptions are misnomers as there cannot be a sale by execution of a power of attorney nor can there be a transfer by execution of an agreement of sale and a power of attorney and will. As noticed in the earlier order, these kinds of transactions were evolved to avoid prohibitions/conditions regarding certain transfers, to avoid payment of stamp duty and registration charges on deeds of conveyance, to avoid payment of capital gains on transfers, to invest unaccounted money (black money) and to avoid payment of unearned increases due to Development Authorities on transfer.

(2.) The modus operandi in such SA/GPA/WILL transactions is for the vendor or person claiming to be the owner to receive the agreed consideration, deliver possession of the property to the purchaser and execute the following documents or variations thereof:

(3.) The earlier order dated 15.5.2009, noted the ill-effects of such SA/GPA/WILL transactions (that is generation of black money, growth of land mafia and criminalization of civil disputes) as under: