No property transaction on POA:SC

Posted: 18 Oct 2011 05:09 AM PDT

The real estate sector is now under pressure following to Apex court’s latest judgment regarding the immovable property. The Supreme Court has ordered that any deal or transaction of immovable property will be considered as “illegal” through power of attorney (POA) unless the case is “genuine”.
According to market analysts argued that it is very difficult to point out the market size of POA deals, on the other hand several other sector watchers “especially in Delhi northern India 70 percent of the property deals are could constitutes.” The Supreme Court has alleged that there is extensive use of POA to transfer of Properties in the national capital, Punjab, Haryana and Uttar Pradesh, to put a stop to the practice and check generation of black money.
Realtors are used to use POA extensively from last several years it has become a trend in real estate sector to avoid taxes, thereby generating black money.
According to market experts as well as northern states, slum re-development properties and housing boards in Maharashtra have also seen significant levels of POA transactions. Huge number of real estate deals has done through POA. They added that, POA is also the common way to get done the slum redevelopment properties and housing boards in Maharashtra have also seen significant levels of POA transactions.
In the aftermath of the judgment huge number of property transactions will be severely changed, the number of transactions is unlikely to be impacted, early assessment suggests.