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UHi everyone,
I need some urgent clarity regarding the Karnataka Stamp Act (Article 41) and the registration fees for a Special Power of Attorney (SPA) under the Kaveri 2.0 system.**Background:**
• We are currently processing a **Release Deed** for an ancestral/family property located in Karnataka valued at approximately ₹1 Crore.
• My dad passed away. Under the Hindu Succession Act, we (the children of the predeceased son) are Class I legal heirs.
• For the **Release Deed** (Article 45), the sub-registrar accepts us as “family,” allowing us to relinquish/settle shares under the flat concessional stamp duty rate (₹1,000 stamp duty + ₹500 registration fee).**The Problem:**
My grandmother (95yo) holds a 25% share (worth approx ₹25 Lakhs) and cannot travel to the property’s local Sub-Registrar Office (SRO) due to her age. She wants to execute a **Special Power of Attorney (SPA)** in her local SRO (where she currently resides) to authorize one of us to present and sign the Release Deed on her behalf at the property’s SRO.
However, we are getting conflicting legal advice regarding the stamp duty and registration fees for this PoA:
1. **The “Non-Family” Catch:** Under Article 41 of the Karnataka Stamp Act, the narrow definition of “family” for a PoA does not include the children of a predeceased son (grandchildren).
2. **The 2% Registration Fee Worry:** Some local resources suggest that because the PoA is being given to a “non-family” member, the sub-registrar will assess the registration fee at **2% of the property value/share** (which would be 2% of ₹25 Lakhs = ₹50,000!).
3. **The “No Power to Sell” Reality:** The SPA we are drafting will **not** grant any power to sell, gift, mortgage, or transfer the property. There is no monetary consideration. The sole and exclusive power granted is: “To present, sign, and admit execution of the specific Release Deed before the SRO.”**My Questions for the Experts Here:**
1. If a Special PoA is executed **strictly to admit execution of a Release Deed** (with zero power to sell, transfer, or develop, and no consideration), does it fall under the flat-fee category of Article 41 (approx. ₹100–₹500 stamp duty + ₹100–₹200 registration fee) even if given to a legally “non-family” member?
2. Will the Kaveri 2.0 portal or the Sub-Registrar try to block this or flag it for the 2% registration fee simply because the word “Property” is involved and the relationship is “grandchild”?
3. Are there specific, mandatory clauses we must include in the SPA draft to guarantee it is categorized as a flat-fee document and bypasses any percentage-based (ad valorem) valuation?
Any insights from advocates practicing in Karnataka or anyone who has recently registered a similar SPA on Kaveri 2.0 would be immensely appreciated.Thank you!
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