Article from ET Realty
BENGALURU: A move by the Karnataka government to do away with the presence of landowners before the registering authorities, while mortgaging their properties with financial institutions, has run into rough weather.
An amendment in this regard to The Registration Act of 1908 passed by the Karnataka legislature is clouded in uncertainty , as the Centre has put a spoke in the plans, fearing possible conflict of provisions in the bill with the Information Technology Act of 2000. The concurrence of the Centre is mandated in this passage of this particular bill, as the Registration Act of 1908 is a central Act and falls under the concurrent list of the Constitution.
The amendment seeks to facilitate certain land transactions via e-mails and electronic transfer mediums. It also provides for bankers or financial institutions to send the attested copies of land records for securing repayment of loans electronically to the registering officer, within whose jurisdiction the whole or any part of the property is situated.
The Bill, which was passed earlier this year, was proposed to ease the transaction business for people looking at swift movement of files for settling land transactions. In the Bill’s statement of objectives, revenue minister V Sreenivas Prasad said: “…it is considered necessary to amend the Registration Act of 1908 in its application to the State of Karnataka to provide online registration of Agreement for sale, lease deed, and leave and license agreements and for online filing of true copies of court orders, decrees and mortgages by way of deposit of title deeds etc., sent by banks and other financial institutions and to make certain consequential amendments.”
On November 6, the ministry of rural development, department of land resources, sent a letter to the revenue department, stating that the proposed amendments by Karnataka to the Registration Act may have to be cross-verified. It has now sought a meeting with the revenue department’s principal secretary to “fully understand some of these provisions and sort out the concerns of this department on certain clauses of the Bill which may run counter to the provisions of the Information Technology Act, 2000, as amended by Act 10 of 2009”.