A bill to amend the century old Registration Act to help check the loss of revenue to the state seeks to make registration of lease deeds of immovable properties and Power of Attorney compulsory irrespective of their term.
The Bill also makes it mandatory for every person presenting the document at the registration office to affix his passport size photograph and get photographed by a digital camera on the document.
The Registration (Amendment) Bill, 2013, to further amend the Registration Bill, 1908, introduced in the Rajya Sabha today by Rural Development Minister Jairam Ramesh, also seeks to make provisions for the recovery of deficit registration fee and refund of excess fee.
It also provides that Wills or authority to adopt a Will and any document notified by the state government may be registered at the option of the parties.
The Bill also provides that immovable property can be registered only in the state in which it is actually located, but the Central or State government can allow a particular document to be registered in any registration office.
The Bill also includes a new section which prohibits the registration of certain documents relating to transaction which is prohibited by any central or state act, besides prohibiting registration of any document which is likely to affect the accrued interest in immovable properties of central or state government, local bodies and other properties as may be notified by state government.
The Rural Development Ministry's Bill has been brought in after incorporating the recommendations of a Committee headed by Secretary, Department of Land Resources to suggest amendments to the Registration Act, 1908.
As the century-old
Act had many lacunae whereby many exploited its provisions by not getting their lease deeds below one year for their immovable property registered, thus causing revenue loss to the state.
"At present the Power of Attorney is optionally registrable. Many unscrupulous elements have found an ingenious way to avoid the registration and transfer the immovable properties through this Power of Attorney," the statement of objects and reasons of the Bill states.
The new Bill provides that all banks and financial institutions granting loans on the basis of equitable mortgage, may send the copy of the same online to the registering officer within the local limits of whose jurisdiction the whole or any part of the property so mortgaged is situated.
It also states that the present Act does not contain the provision for recovery of deficit registration fees or refund of the excess registration fees collected by the Registering Officer.
The present Registration Act, 1908, envisages that leases below one year are not compulsorily registrable and this provision has been exploited and thus leases below one year are prepared, which are renewed after the specified period.
"This not only causes hardships to both the parties in cases of disputes but also loss of revenue to the States," the Bill's statement states.
The new Bill envisages making registration compulsory irrespective of the leases of immovable property for any term.
"However, in case the lease is for a term less than one year, the State government may specify the amounts of annual rent etc, which shall not be less than fifty thousand rupees per month," the statement added.
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A bill to amend the century old Registration Act to help check the loss of revenue to the state seeks to make registration of lease deeds of immovable properties and Power of Attorney compulsory irrespective of their term.