TMI Blog2009 (5) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;). To avoid the cumbersome procedure in obtaining permission and to avoid payment of the huge part of the price to the DDA as unearned increase, a hybrid system was evolved whereby the allottee/holder of the flat, on receiving the agreed consideration would deliver the possession of the flat to the purchaser and execute the following documents: (a) An Agreement of sale confirming the terms of the sale, delivery of possession and payment of full consideration and undertaking to execute any document when required in future. (b) An Irrevocable General Power of Attorney in favour of the purchaser or his nominee authorizing him to manage, deal with and dispose of the property without reference to the vendor. (c) A will bequeathing the property to the purchaser as safeguard against the consequences of death of the vendor before transfer. The `Power of Attorney Sales', as noticed above was adopted to overcome the restrictions/prohibitions in terms of allotment and the rules of allotment of DDA governing the allotment of flats. Such transactions were obviously irregular and illegal being contrary to the rules and terms of allotment. Further, in the absence of a registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchaser under such `power of attorney sales' comes to know about the vendors action, he invariably tries to take the help of musclemen to `sort out' the issue and protect his rights. On the other hand, real estate mafia many a time purchase properties which are already subject to power of attorney sale and then threaten the previous `Power of Attorney Sale' purchasers from asserting their rights. Either way, such power of attorney sales indirectly lead to growth of real estate mafia and criminalization of real estate transactions. We are therefore of the view that the situation warrants special measures. We are informed that sometime back in 2008, there was a proposal to amend Section 147 of Delhi Municipal Corporation Act, 1957 to check and discourage `power of attorney sales'. There was also a proposal to have special enactment relating to registration and recording of title in Delhi. But so far nothing appears to have fructified. It is the dream of every citizen to own a house or a plot of land. The citizens must be enabled by the government to do so with safety, security and without fear of litigation or defects in title. We therefore request the Solicitor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against Dharambir Yadav and his son in the District Court, Gurgoan, for offences punishable under Sections 406, 420, 467, 468, 471 and 120B of IPC. The petitioner claims that in December 2005 it lodged an FIR in respect of offences under Section 406, 467, 468, 471 and 120B of IPC against all of them. 3. The petitioner claims that as no action was taken on its FIR by the Station House Officer/Investigation Officer (`SHO/IO' for short), petitioner filed an application under Right to Information Act, 2004 (`RTI Act' for short) seeking the status, in response to which the SHO/IO gave contradictory and misleading versions about the status of the investigation and about the seizure and custody of the agreement and power of attorney from the accused. An appeal filed by the petitioner was disposed of by the Chief Information Commissioner, Haryana, by an order dated 27.12.2007 merely directing that Police should re-investigate the FIR as per the order of the court and the Department should give a specific proper reply about the status of the documents, to the appellant by 25.1.2008. According to the petitioner, the Commissioner ought to have initiated action against the police fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to execute any document when required in future. (b) An Irrevocable General Power of Attorney in favour of the purchaser or his nominee authorizing him to manage, deal with and dispose of the property without reference to the vendor. (c) A will bequeathing the property to the purchaser as safeguard against the consequences of death of the vendor before transfer. 6. The `Power of Attorney Sales', as noticed above was adopted to overcome the restrictions/prohibitions in terms of allotment and the rules of allotment of DDA governing the allotment of flats. Such transactions were obviously irregular and illegal being contrary to the rules and terms of allotment. Further, in the absence of a registered deed of conveyance, no right, title or interest in an immovable property could be transferred to the purchaser. However, the Delhi High Court in a few cases accepted such `Power of Attorney Sales' as creating an `interest' in the DDA flat which was so `transferred' and consequently, protected such interest of the purchaser by issuing injunctions or decrees preventing the vendor from further dealing with the property. This led to a general impression the `Power of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have, affecting that property. In other words, it enables people to find out whether any particular property with which they are concerned, has been subjected to any legal obligation or liability and who is or are the person/s presently having right, title, and interest in the property. It gives solemnity of form and perpetuate documents which are of legal importance or relevance by recording them, where people may see the record and enquire and ascertain what the particulars are and as far as land is concerned what obligations exist with regard to them. It ensures that every person dealing with immovable property can rely with confidence upon the statements contained in the registers (maintained under the said Act) as a full and complete account of all transactions by which the title to the property may be affected and secure extracts/copies duly certified. 9. 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us vendors and/or purchasers giving nightmares to bonafide purchasers intending to buy a property with certainty regarding title. It also makes it difficult for lawyers in tracing and certifying title. Any process which interferes with regular transfers under deeds of conveyance properly stamped, registered and recorded in the registers of the Registration Department, is to be discouraged and deprecated. 12. The present case is a typical example of the consequences of not obtaining a registered sale deed. There is apparently no reason as to why a company registered under the Companies Act should resort to such a transaction. Execution of a will by an individual bequeathing an immovable property to a company, is also incongruous and absurd. If there was a bar and the process was adopted to overcome such bar regarding sale of lands, then courts should not go to their assistance, as that would amount to perpetuating illegalities. If there was no bar, then the questions that arise are: why should a company hold a property in a state of suspended animation from 1991? How can a company `verbally' agree to sell a property to someone? What is the reason for the delay in lodging the ..... 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