In Suraj Lamp & Industries Pvt Ltd v State of Haryana the Supreme Court of India has observed that it has become common practice to effect transfers of immovable property by way of either general power of attorney (GPA),or sale agreement (memorandum of understanding) in order to evade, among other things, the payment of duties, taxes and other fees payable on transfer and registration (eg, stamp duty or registration fees). The Supreme Court held that GPA and will transfers do not convey title to property in India and do not amount to a transfer of immovable property. The court further held that such transactions cannot be recognized as a valid mode of transfer of immovable property. However, while the Supreme Court held such transactions to be invalid, it also clarified that such observations were in no way intended to affect the validity of sale agreements and powers of attorney executed in genuine transactions.
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