Kerala - Kochi   

Changes in Act will check realty speculation

The government’s initiative to re-draft land registration rules is welcome as it is expected to bring down land cost so that the less privileged can also realise their dream of owing a house. The rules should be so framed that transaction of land never creates profit for the real estate mafia. Increasing the stamp duty, affixing both the buyer’s and seller’s photo in the document, publishing the land ownership details in a website, prescribing a minimum land holding period of five years would definitely bring down speculation on land.

In a country where the volume of black money is equal to that of white money, realisation of these ideals is a distant dream. However, even one good step to bring down benami and hawala dealings on land will be a boon to the majority of the people. Land should be made a basic commodity of human needs.

There are over 12,000 approved and qualified valuers and their expertise should be used in finding the fair value of land. Publishing land prices in the web and updating them regularly is a Herculean task and errors are bound to occur.

Ganesan P.N.

Mulanthuruthy

Poor landowners are cheated by the land mafia and real estate agents and brokers, even after the new laws on production of photos and ID cards. There is a mafia operating in this field. This mafia controls the valuation and under-valuation of lands. They read in between the lines and make rules for and on behalf of them. Sometimes, without the knowledge of the land owner, his land is sold. Some of the staff of the registering authority are also part of this mafia.

Why don’t the registering authority insist on the selling party producing the original deeds, instead of the document writer’s papers?

All the papers including the original deed, previous title deeds, no-encumbrance certificates and tax receipts, should be produced by the seller along with his ID card and photo with his thump impression and signature, in front of the registering authority. One month’s time should be given for registration, after submission of these papers by the seller to the registration authority and these papers can be verified by any public on demand to avoid confusion and disputes later. The actual rate of purchase should also be mentioned in the papers submitted by the document writer. If these steps are taken, benami transactions can be prevented considerably.

P. Sankaranarayanan

Petta

The maxim, “killing the goose that lays golden eggs” is an apt description of the latest move by the government. Although, the changes introduced in the registration of property transactions, particularly with reference to ending benami transactions are welcome, the fact is, after this move land dealings have drastically come down. The decision to fix fair value to land for ensuring clean and transparent dealings does not seem to have been done based on any scientific and practical thinking. Now that we are in the midst of a global recession, which Kerala definitely cannot escape, suitable changes have to be made to stimulate the real estate segment for revenue inflow into the government coffers. The government policy seems to be “making hay while the sun shines” which is not sustainable in the long run. R. Unni Krishnan

Edappally

At present, there is no restriction on the same person purchasing any number of plots anywhere in the State. One can buy plots in any district, and if not declared, nobody bothers. Why not fix a limit that one person can be the owner of only three or four plots anywhere in the State?

The government’s new orders on affixing photos, ID cards, are good, as far as they prevent benami transactions, but it affects the government exchequer because of non-registration of lands now-a-days. The government should study well the situation to improve its revenue.

Sreelakshmi Sankar

Kochi

The changes in the Registration Act will not change the basic instinct for corruption in the department concerned and will not help to improve the revenues. It will not affect the big dealers or the big purchaser but only the ordinary man who wishes to purchase land for building his house.

It is not practical to impose a specific market value on the property and it will not be fruitful, because properties, even if they are situated in the same survey number, have variations in value depending upon their shape, structure and amenities.

The Kerala Stamp (Prevention of Undervaluation of Instruments) Act is effective in checking undervaluation of land. Rule 5 explains the principles for determination of the value or consideration of the lands and the registering authority has the power to impound the document at the time of the registration or after the registration, and the same can be forwarded to the district collector for the determination of the value and consideration and the proper duty payable thereon as per Section 45B of the Stamp Act. The collector can determine the real value and the deficient amount is to be paid by the person concerned.

Most of the appeals allowed in favour of the aggrieved party are due to technicalities and lack of procedures adopted by revenue officials.

The demand for another law enactment and amendments in the existing laws without complying with the proper steps and procedures of whatever is stipulated in the present Act and Rles, is baseless and needless.

A. Haridasan

Guruvayur

Kerala has registered a remarkable rise in recent times of revenue generation from land transactions. Many revenue districts, especially the commercial capital Kochi, have outpaced their target. The credit for this monetary flow into the exchequer of the State goes to the reforms introduced of late.

The changes pave the way for curbing fraud in land transactions. The introduction of identity cards, akin to those used in elections, helps prevent dubious and fraudulent transactions. Making mandatory signatures and thumb impressions of both the buyers and sellers ensures transparency in land deeds. Though the NRIs can continue to avail themselves of the power of attorney facility, they are required to send the necessary stamp papers affixed with their thumb impressions and their photographs.

This measure ensures elimination of the benami and mafia menace.

Another innovation that led to the proliferation in land registration is the inception of digital imaging system. Now it is a matter of minutes to get the registration document from the registration office. Pending applications for document have been cleared to a few days after the introduction of the system. Hopefully, it will be extended to every district.

The allegation that the reforms have caused revenue loss due to the fall in the number of registrations needs no heed. It may be a transitory trend as all novel schemes are bound to suffer. The loss can be amply compensated by the increase in revenue later.

N. Sadasivan Pillai

Camp: Modinabad

After implementation of the new rules and regulations such as production of identity cards, affixing of photographs on the deed, details of sureties, income details, registrations in the State have reduced as also the revenue to the State. The number of registrations in the State is less than 30% compared to previous years because of these. This has checked benami transactions and bulk purchase. The valuation of the land, fixed by the registering authority, is not correct and because of this, the common man suffers a lot. The government must have a re-look of the subject and fix a rate from land to land, and this should not affect the common man. Thripunithura S.N. Panicker

Poonithura

The real estate sector in Kochi flourished on the basis of speculation relating to the proposed SmartCity and Metro Rail project as well as the ongoing Vallarpadam terminal. As a result of the speculation, land prices have soared. The large-scale flat builders and contractors made undue profits within a short period of time.

The requirement of providing the photographs of both the buyer and seller in the document of sale is a good step to prevent the land mafia from engaging in benami transactions. The public should be aware of the risks in such transactions. These modifications brought into the process of land registration will be effective in curbing illegal practices in the real estate sector.

Krishna K.

Maradu

There was a boom in the real estate sector and with a consequent boom in the construction sector, a plethora of multi-storeyed buildings arose in the metropolises, towns and suburbs in Kerala. It is the real estate mafia which is taking maximum advantage and reaping profits. And they know no scruples. Therefore, the move of the government to introduce changes in the registration of property is welcome. It will certainly lead to transparency in transactions. The only thing is to evolve an effective monitoring machinery to ensure that the changes introduced are not honoured in the breach than in their observance.

K.B. Rajagopalan

Kochi

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