Ensuring clean title

While the process of registration is tiresome,the land records are obsolete. Land records were originally prepared for the purpose of collecting land tax. Now,the tax regime has changed income from agriculture is not taxed anymore but these records remain a part of the revenue department and there has been no real-time integration with the registration department that oversees property transactions.

Besides,in several Indian states,land and town survey maps have not been reviewed,leading to amplified land disputes,and growing legal and transaction costs.

Sometime ago,the Union Ministry of Rural Development had announced that computerisation of land records would be hastened and a new system that guaranteed title to the registered property would be put in place. Though computerisation of land records began in 1991,it has not yet been completed in many states. Expediting it needs to be a priority for state governments. The Centre has allocated sizeable funds for this mission. However,the implementation of the mission depends on state governments as land is a state subject.

At the same time,one also needs to remember that complexity in the registration process is also a function of the law,which seeks to protect the rights of the buyer by establishing the indisputable integrity of a property title. The complexity is not the result of bureaucratic processes alone.

DOWNSIDE RISKS

Not only are records shabbily maintained,they are also presumptive in character. Anyone who is shown on the records as paying revenue for a particular property is presumed to be its proprietor. The title to the property is only incidental. Legally,revenue records are not documents of title. Hence,a title claim based on a record of property tax payments can be challenged in an appropriate court of law. Elaborating on the problems involved in getting a property registered,Rajeev Rai,vice president-corporate,Assotech,says: Anyone who wants to enter into an immovable property transaction is expected to investigate its title oneself. If one unknowingly buys a defective title,the only remedy is litigation as no guarantee is offered by the state. Property owners are extremely wary of letting out their property because they are scared they will never be able to get it vacated. The large-scale encroachment of government land in all parts of the country reflects this reality.

Rai adds that ideally people should not have to satisfy themselves about the validity of a title,and the state must guarantee the title to land. A certified document must be issued to all those who occupy any kind of immovable property,including a tenant,lessee,owner or a GPA holder. Anyone who purchases a property from a registered proprietor and gets the transaction registered must acquire a firm claim to the land. In case a purchaser is defrauded,the state should compensate him, says Rai.

SMOOTHENING TRANSACTIONS

Technology upgradation alone will not be enough to improve the system and make the process of registration smoother. At present,the registration system offers no further assurance to the title beyond what the seller claims. By assimilating various records and corroborating them,the registration system could guarantee the title of the property. But as an official working in the office of Ghaziabads sub-registrar warns,the task is not easy. This is not a simple task. Experience at a different place has shown that it will be wise to avoid boundary verifications of property and the attendant disputes. Suggestions have been made that the system should remain focused on title verification and record integration. He explains that apart from technological solutions,it will also require well-trained staff that can enable quick and efficient use of records and delivery of services.

Greater transparency and ease could be introduced by reducing paperwork and adopting online processes,say,on the lines of visa or passport application. While the verification process would still be of paramount importance,the administrative component would be vastly reduced, suggests Swamy.

MUCH-NEEDED REFORMS

The Registration Act,which was enacted in 1908,definitely needs to be re-examined with 101 years having passed since its enactment. Apart from this,proper infrastructure to handle the high inflow of registration documents,computerisation of registration records and rationalisation of the registration process are needed. The supporting documents and procedures required for this procedure must be explicitly stated. A smooth system of document acceptance and delivery within a fixed timeframe needs to be introduced. Banks could be roped in to collect payment against stamp duty and other charges with dedicated branches within the premises of the Registrars office. This would reduce the incidence of stamp-duty related frauds. Storing all registered documents in electronic form would provide both officials and end-users easier access to them.

In order to lessen the growing litigations pertaining to fraud in property transactions,Anurag Singh,an advocate at the Supreme Court of India,says,The reform which is to be ushered in should aim at establishing a unique identity to all the properties across the country so that the registration done can be streamlined and thus allowing easy access to the history of the property before entering into any transaction.

At a time,when the real-estate sector is facing a severe slump,the authorities need to reform the property registration system and rationalise stamp duty rates in order to make the sector more buyer-friendly. While these reforms in themselves will not ensure a turnaround,they will ensure faster and hence greater volume of transactions once the sector revives. l

praveen.singhexpressindia.com