The Mysore Urban Development Authority (MUDA) has come under flak for promoting the sale of sites through General Power of Attorney (GPA), which has been declared illegal by the Supreme Court.

In a release, P.M. Bhat of the Mysore Grahakara Parishat (MGP) pointed out that MUDA placed advertisements in local newspapers announcing the sale of MUDA-allotted sites through GPA.

“The advertisements state that if no objections are received within 15 days, MUDA will transfer the site to the buyer,” Mr. Bhat said.

However, a Supreme Court ruling of October 11, 2010 outlawed such sales by urban development authorities. “As the Supreme Court observed in its judgment, the purpose of GPA sales is to avoid stamp duty and registration charges, avoid payment of capital gains, invest black money, avoid any public record of transactions, enable persons to hold any number of properties without disclosing them as assets held, and avoid payment of ‘unearned increases' due to development authorities on transfer,” said Mr. Bhat.

Further quoting the court's observations, the release claimed GPA sales adversely affect the economy, civil society, and law and order.

The sale of immovable property through GPA was illegal even before the Supreme Court pronouncement; the court had only reiterated what was already law, said the MGP member.

Welcomed

The Supreme Court ruling was welcomed by the Federation of Tax Payers Association, the release added.

H.V.S. Murthy, advocate and member of the association, told The Hindu , “The Supreme Court has understood the malpractice involved in GPA sales and its impact on the economy. The transfer of property rights through GPA cannot be done anymore and this will help regulate transactions related to immovable property to a large extent. Some persons may be affected, but this ruling is to be welcomed [as it] will benefit genuine buyers of property,” he said.

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