Bought Land Through a GPA? Income Tax Action in Hyderabad Is a Wake-Up Call for Property Buyers

HYDERABAD | August 5, 2026: If you're planning to buy land through a General Power of Attorney (GPA) instead of a registered sale deed, this latest action by the Income Tax Department is a reminder to verify every property document carefully. The department has provisionally attached three prime land parcels in Hyderabad's Gopanpally after suspecting the transactions were linked to benami property deals.

The case highlights how improper property documentation can put valuable real estate under legal scrutiny and leave genuine buyers at risk.

What happened?

The Income Tax Department's Benami Prohibition Unit has attached three adjoining land parcels spread across 3,630 square yards in Gopanpally village, Serilingampally mandal, Rangareddy district.

Officials estimate the combined value of the properties at around ₹5.52 crore.

The attachment has been made under the Prohibition of Benami Property Transactions Act, 1988, meaning the properties cannot be sold, transferred or otherwise dealt with until further orders from the adjudicating authority.

Why did the Income Tax Department take action?

According to the investigation, the three properties were acquired in May 2022 through irrevocable General Power of Attorney (GPA) documents that granted possession and sale rights similar to ownership.

However, investigators found that:

• No purchase consideration was reportedly paid by the registered holders.
• The GPA holders allegedly had no financial interest in the properties.
• The actual source of funds could not be identified.
• The real beneficiaries behind the transactions remain unknown.

Based on these findings, authorities treated the registered holders as prima facie benamidars while listing the beneficial owners as "unknown".

 

Statements during the investigation

According to the attachment orders:

• One registered holder reportedly admitted that no money was paid for acquiring the property rights and that he had no interest in the land.
• Another holder stated she signed the documents on her husband's instructions and was unaware of the transaction details.
• In the third case, the registered owner's husband informed investigators that no payment had been made and that the family had no claim over the property.

These statements formed part of the department's findings before issuing the provisional attachment.

What does this mean for property buyers?

Many buyers still consider GPA-based property transactions, especially in land deals. However, this case shows that transactions lacking proper ownership records, financial trail and registered documentation can invite legal action.

Before purchasing any property, buyers should ensure:

• The ownership chain is clear and legally verified.
• Payments are properly documented through banking channels.
• The property is transferred through a legally valid registered sale deed wherever required.
• There are no pending legal, tax or benami proceedings against the property.

 

Why this matters

For homebuyers and land investors, legal due diligence is just as important as checking the property's location or price. A property under investigation or attachment can delay possession, create ownership disputes and significantly affect future resale or financing opportunities.

The latest action serves as a reminder that verifying documents before signing any property deal can help buyers avoid costly legal complications.