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Regular-article-logo Saturday, 31 May 2025

CENTRE PLUGS PROPERTY LAW GAPS 

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FROM OUR SPECIAL CORRESPONDENT Published 29.03.00, 12:00 AM
New Delhi, March 29 :     Flooded with complaints about evasion of registration fees, the Centre today moved to plug legal loopholes and block illegal transfer of property. The government announced it would make necessary legislative amendments to prevent unscrupulous property buyers from getting away without paying registration charges. The new laws will even insist on registration of property transacted through powers of attorney. The Cabinet considered three simultaneous amendments to three related Acts - the Registration Act of 1908, Transfer of Property Act, 1882 and the Indian Stamp Act, 1899. The government will enact the Registration (Amendment) Bill to carry out the changes. The Cabinet took note of the minutes of the conference of chief ministers and state finance ministers held in September 1998. Even a general power of attorney will now have to be registered and it has to be done in the area where the property is located. States had earlier complained that through powers of attorney, buyers were getting away without paying the registration fees, depriving the exchequers of substantial revenue. Besides, the governments said, buyers were misusing the freedom to register one's property anywhere in the country. For example, Bengal had complained that registration for transaction of property in Calcutta was being done elsewhere in the country, especially in places where the fees were lower. To prevent such misuse, the Cabinet decided to amend relevant portions of the relevant Acts. All powers of attorney related to transfer of immovable property will be subject to compulsory registration. Necessary changes will be made in Section 53A of the Transfer of Property Act and sub-section (2) of Section 30 of the Registration Act. States like Maharashtra, Bengal and Delhi are expected to benefit from the order. In Bengal, even if direct sale of property has not been allowed in Salt Lake, a Calcutta exurb, benami transactions have continued through long-term leases granted with the general power of attorney. For these transactions, the buyer did not have to pay any registration fee to the state government. The Cabinet also decided on certain other directives on property transactions. It will now be compulsory for the registering officer to preserve records in computer floppies and diskettes. In addition, any person executing a property document will have to affix his passport-size photograph and finger-prints on the paper.    
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