In a major relief, the Delhi government has lifted restriction on sale of leasehold properties which will benefit lakhs of property owners and may trigger hike in real estate prices.
The Revenue department has asked all registrar offices to allow purchase and sale of leasehold properties and the decision came into effect from today.
Though, there were restrictions, transactions had been taking place through general power of attorney.
Officials said properties that have changed hands but were registered through power of attorney or sale agreement will be allowed for sale and purchase transactions.
The Revenue Department had forbidden purchase and sale of leasehold properties in 2011.
“It is clarified to all Sub-Registrar that under Section 17 (1-A) of the Registration Act, the documents containing contract to transfer for consideration any immovable property is compulsorily registrable document if having been executed after the commencement of Registration (Amendment) Act 2001, (w.e.f. 24.09.2001).
“An agreement to sell in respect of immovable property is covered under section 17 (1-A) of the Registration Act and is a valid document to be registered if so desired by the parties and as such all these documents cannot be refused by Sub-Registrar,” the circular said.
The decision is likely to benefit lakhs of property owners in the national capital as they will be able to sell their properties.
The government decision, experts said, may fuel hike in property prices.
The property owners had been demanding relaxation in the norm for many years and now the decision will benefit areas such as Rohini, Vasant Kunj, Dwarka, Janakpuri.
The Delhi Development Authority (DDA) owns such leasehold properties and the restriction had been imposed after commercial activities were reported in some of the colonies owned by the agency.
DDA officials said the decision will help owners of leasehold properties in a major way.