Haryana Modifies Property Sale Deed Registration Rules to Curb Irregularities

By : 360 Realtors

28 September, 2020

After a spurt in property registry scams during the lockdown, the Haryana Government has decided to make major changes in the property sales deeds processes. These would reduce the misuse of loopholes in the system.

More than 30,000 of the sales deeds were processed during the lockdown which were carried out without No Objection Certificates. It is mandatory to obtain the necessary NoC certificate from the concerned bodies before proceeding to complete a property deal. Recently, a number of officials posted in Gurgaon were suspended for their links with the scam.

The deputy commissioner (DC) of the concerned region would now be held responsible if any such loopholes are misused. The DCs have been given the responsibility of the final approval of the sales deeds. The deputy commissioner must verify every legal process and NoC and approve or reject the deed accordingly. In case they are unsure about anything, they must get it clarified from the concerned urban local bodies.

It might also be noted that an integrated online platform backed by robust software would be implemented by the Haryana Government. A first such system in India, it would greatly reduce human interference and increase transparency in the registration process. Before a sales deed reaches the DC for approval, it would have to pass the checking by the software. The software would recognise a property only if the land carries a valid revenue number. The deal wouldn’t be cleared by the software until they are approved by the concerned bodies.

A large number of illegal constructions and property deals have been revealed under investigation. For example, in Sector 67, Gurgaon, a residential complex housing more than 100 families was found to have registered illegally. Moreover, in order to avoid suspicion, the developer had named the project similar to a nearby approved township such that it would look like a part of the township.

Previously in 2017, large areas were purchased without NoCs collaboratively by a large number of buyers by abusing a loophole. The government had announced that sales deeds for large agricultural lands wouldn’t need any no-objection certificate. The people who came together to buy these lands later developed colonies in it.

The new system would be centralised, integrating information from every department. This would not only make it easy to find relevant information, but also hasten the registration processes. By the end of 2020, the land records would be recorded and uploaded into the system. The integration of the various departments would increase functional efficiency and transparency.

While the government doesn’t want to punish those who abused the previously existing loopholes, they would try hard to prevent any such events in the future. The new software would make it possible to eliminate several of these loopholes. Apparently, the real estate sector in this state is growing well. With several remedial measures being taken by the government, the industry is expected to revive soon.