TaxTMI 
TaxTMI 
2015 (3) TMI 1423
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.... agreed to sell the suit property to Mrs. Raymen Kukreja for a sale consideration of Rs.20,50,000/-. Jan Talwar, in respect of the same suit property, also executed a General Power of Attorney dated 10.06.1986 in favour of Lekh Raj Kukreja-husband of vendee i.e. Mrs. Raymen Kukreja. The cause of action arose in the year 1989, when Jan Talwar refused to execute the sale deed, even after receiving the complete sale consideration. This led to the filing of civil suit being CS (OS) No.2777/1989 for a decree of specific performance of the aforesaid agreement to sell. Though the agreement to sell was made in favour of Raymen Kukreja, the suit for specific performance was filed by the respondent-Gaurav Kukreja and Lekh Raj Kukreja (father of Gaurav Kukreja) against Jan Talwar and Raymen Kukreja (mother of Gaurav Kukreja). The civil suit was filed on the premise that both, the GPA holder (father of Gaurav Kukreja) and vendee (mother of Gaurav Kukreja) had surrendered their rights in favour of Gaurav Kukreja and that they had no objection if the property is transferred in the name of respondent. Jan Talwar having remained ex parte, the suit was decreed by Single Judge in terms of a compromi....
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....y the dismissal of Letters Patent Appeal, respondent-DDA has preferred this appeal. 7. Contention of DDA is that the suit property is a leasehold property and any attempt to dispose of the same should have been proceeded only after an approval from DDA. It was submitted that the suit for specific performance filed by the respondent and his father-Lekh Raj Kukreja against Jan Talwar and Raymen Kukreja, was a collusive suit and was an attempt to escape the payment of stamp duty and registration charges, which would otherwise be payable on the part of the respondent on account of registration of a sale deed. Further contention of DDA is that the respondent does not satisfy the terms of Clause 13 of the Conversion Scheme as he is neither a power of attorney holder nor a holder of sale deed in respect of the suit property. 8. Per contra, learned counsel for respondent has submitted that even after obtaining a decree of specific performance and having paid the conversion charges alongwith surcharge of 331/3%, the conversion of the suit property is being wrongly denied to him. It is submitted that long back on 29.4.2004, an amount of Rs.18,55,347/- has already been deposited with DDA al....
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....istration charges. The official nominated by the Registrar will be paid a fee of Rs.10,000/-." (Annx.-P 3) 12. Instead of complying with the above order of the High Court and getting the sale deed executed, after making payment of registration charges and stamp duty, the respondent applied for conversion of the property through Lekh Raj Kukreja (father of the respondent and power of attorney holder) and the same was rejected. The conversion cannot be sought for by a person who is not the owner of the property but is only residing in the premises. Onbehalf of the appellant, it was submitted that the DDA had even granted N.O.C. way back in the year 2006 (Annx. P8) without receiving un-earned increase charges as per the terms of the lease-deed which is always charged by DDA when the property exchanges hands. According to DDA, it was granted only because a local commissioner was appointed by the High Court. It is further stated that the respondent deliberately did not get the sale deed executed till today and the respondent is trying to evade the stamp duty and registration charges thereby causing a loss to the state exchequer. 13. A scheme of conversion from leasehold system of l....
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....y/Will transfers (for short 'SA/GPA/WILL' transfers), and it was held as under: "19. Recourse to "SA/GPA/WILL" transactions is taken in regard to freehold properties, even when there is no bar or prohibition regarding transfer or conveyance of such property by the following categories of persons: (a) Vendors with imperfect title who cannot or do not want to execute registered deeds of conveyance. (b) Purchasers who want to invest undisclosed wealth/income in immovable properties without any public record of the transactions. The process enables them to hold any number of properties without disclosing them as assets held. (c) Purchasers who want to avoid the payment of stamp duty and registration charges either deliberately or on wrong advice. Persons who deal in real estate resort to these methods to avoid multiple stamp duties/registration fees so as to increase their profit margin. 20. Whatever be the intention, the consequences of SA/GPA/WILL transactions are disturbing and far-reaching, adversely affecting the economy, civil society and law and order. Firstly, it enables large-scale evasion of income tax, wealth tax, stamp duty and registration fees thereby denying th....
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....can they be recognised or valid mode of transfer of immovable property. The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. They cannot be recognised as deeds of title, except to the limited extent of Section 53-A of the TP Act. Such transactions cannot be relied upon or made the basis for mutations in municipal or revenue records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered assignment of lease. It is time that an end is put to the pernicious practice of SA/GPA/WILL transactions known as GPA sales." 16. According to respondent, on 29.4.2004 his father Lekh Raj Kukreja, who was the then Power of Attorney holder has submitted an application for conversion of the said property from leasehold to freehold and deposited the conversion charges of Rs.18,55,347/- and also deposited further sum of Rs.27,222/- towards enhanced ground rent as demanded by the DDA. It was submitted that alongwith the application all nece....