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