The various Governments be it Congress, BJP, AIADMK, etc all lacked the will to curb black money and the windfall il-legal profit Goons and Politicians made by looting general public by means of Real Estate Deals. The Honorable Supreme Court waited for too long and hence decided to pass an order where-in all Real Estate Deals by means of General Power of Attorney, Special Power of Attorney or Agreement for Sale to curb BlackMoney and weed out all the agents who artificially jacked up the prices.
Modus Operandi – A Goon / Property Agent usually backed by local Corporator / MLA lures a property seller and gets an Agreement for Sale or GPA on the said property by paying a paltry sum as advance. Then the Goon starts looking for a client who will BUY this property and if he doesn’t get one he has locked in the Seller by means of Agreement for Sale.
The Agent then finds a BUYER say Naryan at higher price than what is agreed between the Seller and the Agent. Seller is forced to directly registers property in the name of Naryan [Any resistance from Seller, Politicain will interfere with Police and extra Forces] while the Agent / Goon takes the difference in CASH and walks away proudly as if he has created value to the society or done something worth while. By doing so, they evade Stamp Duty and Capital Gains Tax.
If the Seller takes legal approach, Courts in India take 3 or more years to resolve this case by then the price of property would have appreciated, mental agony and don’t forget corruption in judiciary as well as lawyers eating at both ends. The Supreme Court order now leaves little scope for such practice and eliminate bad elements of the Society usually Goons / Corporators, MLAs, etc.
In blood relation GPA holds good