Supreme Court Reiterates: GPA or Sale Agreement Don’t Transfer Property Ownership

The Supreme Court has reaffirmed that an agreement to sell or a General Power of Attorney (GPA) does not transfer ownership title of property, emphasising that only a legally registered sale deed confers such rights.

The ruling prevents misuse of GPAs and informal agreements to circumvent property laws and tax obligations.

The court directed authorities and buyers to strictly adhere to the Transfer of Property Act and Registration Act to ensure transparent and legally valid transactions.

Resultantly, the Court allowed the appeal and dismissed the suit.

[Ramesh Chand (D) Thr. Lrs. v Suresh Chand and Anr.]