Delhi to Mandate Registration of Builder-Landowner Deals, 1% Fee

Under the proposed changes, an agreement on stamp paper alone would no longer be sufficient. Failure to register could create complications when a flat covered by the agreement is later sold. In such cases, the pending registration fee could be recovered, adding a 1% cost for the buyer, the officials said.

The government is also tightening rules on property transfers through a General Power of Attorney (GPA). Stamp duty may be imposed when a GPA transfers property to someone outside immediate blood relations, with the amount determined by the Collector of Stamps. The government is considering a 4% stamp duty on such GPA transactions, according to an Indian Express report.

Under the proposed process, the Collector of Stamps must issue a written, reasoned order within 30 days to decide whether a document qualifies as a GPA or is liable for full stamp duty as a Conveyance Deed. The period may be extended by up to three months in exceptional circumstances. Until the order is passed and duty paid, such GPAs remain ineligible for registration.

Sub-Registrars who register these documents without first sending them to the Collector for examination may face disciplinary action, the Indian Express report said.