Unapproved layouts will not be registered anymore
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The Government of Tamil Nadu has replaced Section 22A of the Registration Act to protect the rights of property buyers, writes C.H.Gopinatha Rao
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Photo: M.A. Sriram
A deterrent: The amendment protects the rights of property buyers and prevents proliferation of unapproved layouts.
The confusion that prevailed regarding registering plots in unapproved areas is now settled.
The Government of Tamil Nadu has replaced Section 22A of the Registration Act with the new amendment.
As a result, housing plots bought in unapproved layouts will not be registered in the days to come.
The Tamil Nadu Government has announced through its gazette dated March 4 that the President of India has given the consent to this amendment (Act 2 of 2009). However, the date from which the new rule will come into force has not been announced yet. Between 1997 and 2007, the cancellation of sale deed without the consent of the parties to the documents was not allowed.
Conveyance of lands in unapproved housing plot layouts was not registered.
Also properties belonging to the Hindu Religious and Endowment and Wakf Boards could be registered only when a no-objection certificate issued by the authority concerned was produced. Following the Madras High Court Judgment (in the case of D.R.Bellie vs Sub-Registrar, Coimbatore (2007) 3 MLJ 1025) the State Government issued an order in July 2007 revoking section 22 A. Since 2007, it is possible for any person selling a property to cancel the sale deed without the consent of the buyer and lands in unapproved housing plots could be registered. There were instances when the vendor unilaterally cancelled the sale deed and the vendee had to approach the court for remedy.
Proliferation
This also encouraged proliferation of unapproved layouts. There were no deterrents.
The Andhra Pradesh High Court, in the case of Yanala Malleshwari and others vs Anathua Saymma and others (2007 (1) CTC 97), observed that “the purpose of noting down these provisions of the Transfer of Property Act and the Registration Act is to come to a conclusion as to whether a vendor retains any interest in the property which he sold and of which a sale executed and registered … when a person transfers all his rights his rights in the property are extinguished. If he tries to get back the property, it has to be done by challenging the sale deed which he has executed and which is registered by the sub-registrar.” The practice of cancelling the duly registered sale deed will vitiate the public policy of registration of documents.
Registered sale deed executed duly has some sanctity and people at large rely on them to test the title of the particular person to a particular property. It will be utter chaos, if a person executes a sale deed, registers it today and in the following day gets it cancelled. In the Judgment order of Baduguenkataurga Rao vs Sureni Lakshmi ((2001) ALD 8, Andhra Pradesh High Court) held that person who had executed a sale deed and got it registered cannot subsequently execute a document unilaterally cancelling the previous one. Realising these difficulties, the Government of Tamil Nadu has now replaced the section 22 A of the Tamil Nadu Registration Act.
Henceforth registration of conveyance of lands converted as house sites without proper approvals of the authorities except those which have been already registered will not happen. It also prevents cancellation of sale deed without the consent of the parties to the documents.
These amendments are long overdue and will protect the rights of the property buyers and discourage the proliferation of unapproved layouts. However, it is surprising to note that despite getting the President’s consent, it has not come into force. Early implementation of the Act will provide the much needed relief to the property buyers.
The author is former National President, Institution of Valuers.
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