In a significant move, the Uttar Pradesh (UP) government has implemented crucial changes to combat scams and government fraud associated with power of attorney.
Ravindra Jaiswal, Minister of Stamp and Court Fees and Registration Department in the Yogi government, unveiled the details during a press briefing in Varanasi on Friday.
Under the revised regulations, power of attorney for property sales will now only be permitted among family members, and the fee has been reduced to a flat rate of Rs. 5,000.
For non-family members, charges will align with the circle rate.
These new measures aim to boost revenue, tackle corruption, and shield property owners from financial losses.
The minister explained that if relatives within a family use power of attorney for property transactions, the stamp duty will be limited to Rs. 5,000.
Conversely, if an external party is granted power of attorney for land or house sales, the stamp duty will be based on the prevailing circle rate.
Previously, unscrupulous builders in the western districts of the state exploited a loophole by acquiring farmers’ land through power of attorney agreements, paying a meager stamp duty of just Rs. 50.
The builders would then sell the same land at inflated prices to unsuspecting buyers, resulting in substantial revenue losses.
With the new rules, property transactions must be registered with stamp duty equivalent to the circle rate, effectively curbing these fraudulent practices.
Under the previous system, builders would register property sales through farmers, resulting in income tax notices being sent to the farmers instead of the builders.
This caused distress and inconvenience to the farmers and landowners.
However, the revised system ensures that such notices will no longer be sent to the farmers, providing them with much-needed relief.
