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# Is a General Power of Attorney (GPA) Sale Valid in India? The Law after Suraj Lamp
- URL: https://www.drprashantpratap.com/gpa-sale-valid-india-suraj-lamp/
- Published: 2026-08-04T07:52:34.000Z
- Updated: 2026-08-04T07:52:34.000Z
- Description: The Supreme Court held that a GPA, agreement to sell and will do not transfer property ownership. Only a registered sale deed passes title. Here's the law.
- Author: Prashant Pratap
- Tags: property law

### **The Hon'ble Supreme Court’s Ruling: Suraj Lamp & Industries v. State of Haryana, (2012) 1 SCC 656**

A three-judge bench of the Supreme Court (Raveendran, Patnaik and Gokhale, JJ.) held that a GPA sale, an agreement to sell, or a will (the common “GPA + Agreement to Sell + Will” package) does not transfer ownership of immovable property and only a registered sale deed (conveyance deed) transfers title.

### **Key points from the Suraj Lamp Judgment:**

- A power of attorney is not an instrument of transfer. It only authorizes the attorney holder to act on behalf of the owner. It creates an agency, not ownership.
- An agreement to sell does not convey title. Under Section 54 of the Transfer of Property Act, 1882, a contract for sale of immovable property does not, by itself, create any interest in or charge on the property. Sale of immovable property worth ₹100 or more can only be made by a registered instrument.
- A will takes effect only on the death of the testator and can be revoked or replaced any time before that, so it provides no present ownership.
- Registration is mandatory under Section 17 of the Registration Act, 1908, and an unregistered document affecting immovable property cannot confer title (Section 49).

### **What this means practically for a buyer** 

\- The buyer does not become the legal owner. The title stays with the original owner.  
\- Banks especially nationalised banks will not give loans against GPA properties.  
\- Reselling becomes difficult as the title still stays with the original owner.  
\- The GPA can be revoked by the executant and automatically lapses on his/her death.

**Why people still do GPA deals, and the risk**  
GPA sales were historically done to avoid stamp duty, evade capital gains tax, or sidestep restrictions on transfer. The savings are illusory, as the buyer pays the full price for a potentially disputed title.

**The only safe route:**  
Execute a Registered Sale Deed, with stamp duty paid, registration done at the office of the sub-registrar. Nothing less protects the buyer.