Tech solution to end fraudulent land deals in Karnataka
Kaveri (Karnataka Valuation and e-Registration) software of Karnataka Stamps and Registration department has been integrated with 'E-Swathu' property software of urban local bodies (ULB) attached to the panchayat raj and rural development department
Aug 19, 2014
Source : The Times of India
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BANGALORE: If you are planning to buy property in the state, now onwards you won't have to spend sleepless nights worried about the genuineness of the deal— whether all documents are in order, the seller is the real owner, taxes have been paid and whether there's sanction/approval from the authority concerned.

Middlemen trying to commit fraud will hit the wall at the sub-registrar's office. All thanks to the state government, which has quietly integrated software of two departments to avoid fraudulent transactions.

Kaveri (Karnataka Valuation and e-Registration) software of Karnataka Stamps and Registration department has been integrated with 'E-Swathu' property software of urban local bodies (ULB) attached to the panchayat raj and rural development department.

This will provide information to sub-registrars about properties listed in ULBs. As a result, they will be able to verify the property details before initiating the registration process.

The number of unauthorized layouts and fraudulent property transactions has shot up alarmingly in the state, particularly in Bangalore rural areas, with property prices rising sky-high over the past decade. In 2007, the Karnataka high court intervened and gave specific directions to the state government to prevent such malpractices.

"The integration will go a long way in curbing registration of sites in unauthorized layouts, complaints of impersonation and false documentation for registration of property transactions,'' said N Prakash, inspector-general of registration and commissioner of stamps.

Prakash said it is now mandatory for sub-registrars to verify all property-related documents before undertaking registration of any immovable property. Earlier, there was no definite mechanism for the officials to know if the documents submitted were original or not.

Under the new system, he said, sub-registrars could check the authenticity of the documents submitted during the registration by referring the ULB's database, which has information about all properties enlisted under its jurisdiction. After cross-reference, the sub-registrar can confirm the authenticity of documents such as khata certificate and property tax receipts issued by ULBs.

Welcoming the initiative, Kishore Chander, a realtor in Bangalore north taluk, said the integration will prevent property frauds and influence the buying sentiment among potential investors and buyers.

However, not everyone is convinced that the change will help. Regarding the property database, B M Shivakumar, RTI activist, said, "What happens if the base data is fabricated?"

Case study

Rude shock for businessman

N Shivananjappa, a businessman, booked a 60x40 revenue plot in a newly developed layout in Devanahalli taluk off Kempegowda International Airport last year for Rs 11 lakh, with the help of a middleman.

After getting the property registered in his name at the local sub-registrar office, he decided to build a house. That's when he learnt that the layout did not have sanction of the deputy commissioner (DC conversion) or approval of the gram panchayat concerned.

To his further dismay, Shivananjappa learnt that the site falling under Anneshwara gram panchayat had been sold to him using bogus tax receipts and other documents of gram panchayats with the tacit approval of the local sub-registrar.

The number of such unauthorized layouts and fraudulent land transactions has increased with property prices shooting up during the past decade.

Sample this: N Shivananjappa, a businessman booked a 60x40 revenue site in a newly developed layout in Devanahalli taluk off Kempe Gowda International Airport last year for Rs 11 lakh, with the help of a middleman.

After getting the property registered at the local sub-registrar office, he decided to build a house and realized that the layout had no sanction of deputy commissioner (DC conversion) and layout approval of concerned gram panchayat.

To his dismay, Shivananjappa found that site falling under Anneshwara gram panchayat had been sold to him using bogus tax receipts and other related documents of Gram Panchayats with the tacit approval of the local sub-registrar.

The number of such unauthorized layouts and frauds involving property transactions had shot up alarmingly with property prices rocketing sky-high over the past decade but not anymore.

The state government has quietly integrated Kaveri (Karnataka Valuation and e-Registration) software of Karnataka Stamps and Registration department with 'E-Swathu' property software of urban local bodies (ULB) attached to the panchayat raj and rural development department to prevent any real estate registration related fraudulent cases in Karnataka.

"The integration will go a long way in curbing registration of sites in unauthorized layouts, complaints of impersonation and false documentation for registration of property transactions,'' said N Prakash, inspector-general of registration and commissioner of stamps.

In the current scenario, he said the state was facing many real estate litigations and fraud registration cases particularly in Bangalore rural areas till the Karnataka high court intervened in 2007 and gave specific directions to the state government to prevent such malpractices.

How integration will help?

The integrations of e-governance software will provide information to sub-registrars about the ULB listed properties. This will help them to cross verify the property details and avoid fraud transactions in real estate.

Prakash said it is now made mandatory for the sub-registrars to verify all the property related documents before undertaking any immovable property registration. Earlier, there was no definite mechanism for the officials to know if the documents submitted were original or not.

Under the new system, he said the sub-registrars could check the authenticity of the documents submitted during the registration by referring the ULB database that has all the properties enlisted under the ULB jurisdiction. After cross-reference, the sub-registrar can confirm the authentic documents such as Khata certificate, property tax receipts issued by the ULBs etc.

Welcome the new initiative, Kishore Chander, a realtor in Bangalore north Taluk said the integration prevents property frauds and it will influence the buying sentiment among the potential property investors and property buyers.

But not everyone is convinced the changes will help. Regarding the property database, B M Shivakumar, RTI activist, said, "What happens if the base data are fabricated?".

 

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