In a significant move to regulate property transactions, the Governor of Uttar Pradesh, Anandiben Patel, has approved the Indian Stamp (Uttar Pradesh Amendment) Ordinance – 2023. This ordinance marks a pivotal shift in property registration practices in the state, particularly addressing the loopholes in transactions carried out via Power of Attorney (PoA).
Background and Need for the Ordinance
- Prevalent Misuse: Prior to this ordinance, there was a notable trend, especially in regions like Noida and Ghaziabad, where property registrations were being conducted extensively through Power of Attorney. This method was often exploited to bypass legal and financial obligations.
- Revenue Losses: Such practices led to significant revenue losses for the state government, as transactions through PoA often circumvented standard registration fees and taxes.
Key Provisions of the Ordinance
- Restriction on Non-Familial Transfers: The new ordinance prohibits property registrations through Power of Attorney except for blood relatives. This move is aimed at curtailing the misuse of PoA in property dealings.
- Impact on Property Market: This restriction is expected to bring more transparency and accountability to the real estate sector in Uttar Pradesh, ensuring that property transfers are adequately recorded and taxed.
Implications for Property Owners and Buyers
- Legal Compliance: Property owners and prospective buyers must now ensure that their transactions comply with the new regulations. Transactions through PoA will be scrutinized, especially if they involve parties outside the immediate family.
- Market Adjustment: The real estate market in Uttar Pradesh, particularly in areas like Noida and Ghaziabad, is likely to undergo a period of adjustment as participants adapt to the new legal framework.
In Short you Can Say.
The Indian Stamp (Uttar Pradesh Amendment) Ordinance – 2023 represents a crucial step by the Uttar Pradesh government to streamline property transactions and prevent revenue loss. By restricting the use of Power of Attorney for property registrations to blood relatives, the ordinance aims to eliminate fraudulent practices and enhance the state’s revenue collection. This legislative change is a positive step towards bringing more structure and legitimacy to property transactions in Uttar Pradesh, fostering a more transparent and responsible real estate sector.