Wednesday 23 November 2011

MUDA Is Still Violating Supreme Court Order

MGP issued a press release recently stating that GPA sale of sites has been declared illegal by the Supreme Court in a judgment given on 11-10-11, but MUDA is still permitting such sales. In response, MUDA has issued a statement justifying its actions. MUDA says that it is only transferring sites to buyers on GPAs registered before 1-1-08. By transferring sites to buyers only on GPAs registered after 1-1-08, it seems to imply that it is in consonance with the Supreme Court ruling.
We beg to disagree. The Supreme Court is clear that all GPA sales are illegal. Therefore, MUDA SHOULD NOT BE TRANSFERRING SITES TO BUYERS MERELY ON THE BASIS OF A GPA, NO MATTER WHEN IT WAS REGISTERED. IT SHOULD DO SO ONLY ON THE BASIS OF A REGISTERED SALE DEED. We draw attention to the relevant passages in paras 16-18 of the Supreme Court judgment.
"16. We therefore reiterate that immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of  'GPA sales' or 'SA/GPA/WILL transfers' do not convey title and do not amount to transfer, nor can they be recognized or valid mode of transfer of immoveable property...Such transactions cannot be relied upon or made the basis for mutations in municipal or revenue records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered Assignment of Lease. It is time that an end is put to the pernicious practice of SA/GPA/WILL transactions known as GPA sales.
17. It has been submitted that making declaration that GPA sales and SA/GPA/WILL transfers are not legally valid modes of transfer is likely to create hardship to a large number of persons who have entered into such transactions and they should be given sufficient time to regularize the transactions by obtaining deeds of conveyance. It is also submitted that this decision should be made applicable prospectively to avoid hardship.
18. We have merely drawn attention to and reiterated the well-settled legal position that SA/GPA/WILL transactions are not 'transfers' or 'sales' and that such transactions cannot be treated as completed transfers or conveyances. They can continue to be treated as existing agreement of sale. Nothing prevents affected parties from getting registered Deeds of Conveyance to complete their title... If they are entered before this day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities."
P.M. Bhat, Mysore Grahakara Parishat