Century old Property Registration Act Law changes
planned to curb disputes and stamp duty evasion..!
The
laws on property deals through a power of attorney (POA) - a legal document
that empowers a person to act on behalf of another are all set to get tougher.
The central government is planning to amend the laws to make registration
mandatory for such deals.
This
will be among the amendments sought to be made to above acentury old
Registration Act, 1908. The Act, under the purview of the Department of Land
Resources of the Ministry of Rural Development, prescribes norms for
registration of property and wills as also other kinds of deeds &
documents.
“The
Cabinet may take up for consideration the proposed amendments to this Act on
Tuesday (June 4, 2013). This includes a proposal to make compulsory
registration of POA authorising transfer of immovable property with or without
consideration,” a senior central Government official told BL.
She
also said that compulsory registration will bring property transactions
executed through POA into the ambit of the registering authorities. This will
reduce the disputes related to such transactions. It will also ensure full
realisation of stamp duty to States and Union Territories. Property dealing
through POA is rampant in many States, giving rise to disputes.
Deals
through POAs are done on the basis of notarised documents. This is considered
sufficient to authorise an individual or a firm to use the immovable property.
But, neither can become an owner in the
true sense. This is done to avoid stamp duty since registration of the sale
deed involves payment of stamp duty according to the circle rates.
Another
amendment being considered is to empower sub-registrars, the zonal level
registration authority, to refuse transfer of properties in certain cases.
Such
prohibition on unauthorised transfer of properties includes those whose
transaction is prohibited under State specific laws or / properties that have been attached by courts
or other authorities.
“Such
a provision will reduce the disputes & will ensure that such properties
stay with the rightful owner,” the official added.
One
of the current provisions of the Act makes it mandatory to register the
adoption of a son. Now, in order to provide gender equality, it is proposed to
substitute the word ‘son’ with ‘son or / daughter’, thereby bringing in female
adoptions also into the purview of the Act.
Recently
Tamilnadu state government ordered property deals through a power of attorney
(POA) and other document works, registration mandatory.
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