Delhi government makes registration of all leasehold property sales compulsory
Sub-registrars across all 11 districts have been directed that the `agreement to sell' between a buyer and the builder or developer must be duly acknowledged and registered
Nov 15, 2014
Source : The Economic Times


NEW DELHI: Delhi government on Friday took steps to not only put an end to the confusion among property buyers and sellers but also to contain the builder mafia. In a circular, sub-registrars across all 11 districts have been directed that the `agreement to sell' between a buyer and the builder or developer must be duly acknowledged and registered.

The aim is to stop misinformation that such properties cannot be registered and to bring 1.5-2 lakh properties--residential and commercial--in the loop of compulsory registration on payment of stamp duty . Also, this is an attempt to monitor sub-regis trar offices which hold up the process and prevent the possibility of a nexus with builders.

From now, buyers and developers found executing illegal documents to evade stamp duty will be liable for penalty up to 10 times of the applicable stamp duty on registration and also imprisonment. There are plans to issue advisories and a drive to build awareness among buyers.

A public notice has also been put out to prevent exploitation of buyers misled by builders on the legal position on registration of leasehold properties. Most of these properties are commercial and in Nehru Place, Karampura, Azadpur and Janakpuri.

Citing the judgment of the Su preme Court on the issue of registration of agreement to sell, the guidelines state that the apex court has not questioned the power, jurisdiction and duties of the sub-registrar for registration of the document, whether in the past or future. "In case of leasehold properties, the court clearly held that such properties can be transferred through assignment of lease, which is a compulsory document that must be registered under Section 17 of the Indian Registration Act," the circular states. In this manner, the duty chargeable under the Stamps Act is also applicable.

Senior revenue officials point ed out that there are an estimated 200 towers on prime land in Delhi where developers were given land on lease by agencies like DDA, L&DO and MCD. While these residential and commercial properties are on lease, developers have sold and re-sold them by mutual agreement with buyers. Due to an absence of agreement to sell, it has only resulted in loss of revenue to the state exchequer but also given rise of possibility of disputes.

The order also clarifies that the law makes provision for compulsory registration of builderbuyer agreement or collaboration agreement to develop or construct a property afresh. The stamp duty is applicable to such an agreement.

The circular also says that, in keeping with directions of Delhi HC, properties booked by municipal corporations under unauthorized construction are prohibited from further registration.

Latest Realty News

Lack of clarity on land pooling angers farmers
Nov 15, 2014
GUNTUR: Farmers in the proposed capital region are growing restive with the cabinet sub-committee on land pooling failing to come out with a concrete assurance on compensation package
Plea to Khattar on 'integrated townships'
Nov 15, 2014
GURGAON: A city-based NGO, Aadhikar, and a group of residents have written to CM M L Khattar and MP Rao Inderjit Singh urging them to solve the problem of "integrated townships"
Hike in guidance value may hit flat buyers
Nov 15, 2014
Bengaluru: The recent revision of guidance values will increase apartment prices and add to the burden of people who are yet to register properties bought years ago
CBI arrests builder in Artha Tatwa fraud
Nov 15, 2014
BHUBANESWAR: The CBI arrested a builder on charges of embezzling Artha Tatwa (AT) Group funds
Taskforce on land submits report
Nov 15, 2014
BHUBANESWAR: Taskforce on Land headed by Revenue secretary Taradatt submitted its report to the Odisha government
DLF to launch REITs next fiscal, plans Rs 3600cr CMBS
Nov 15, 2014
New Delhi: DLF, the country’s largest real estate company, plans to launch Real Estate Investment Trusts (Reits) in the next financial year
'BDA to Meet Housing Needs of City'
Nov 15, 2014
BHUBANESWAR: Vice Chairman of Bhubaneswar Development Authority Krishan Kumar said, the State Capital Region Development Fund (SCRDF), a corpus set up by the development body, has, so far, managed to mobilise `100 crore
Alembic launches realty project in Bengaluru
Nov 15, 2014
Ahmedabad: Alchemy Real Estate, real estate arm of the 107-year-old Vadodara-based Alembic Group of companies is all set to enter the Bengaluru real estate market with the launch of luxury apartment project ‘Urban Forest’
DB Realty inks pact with ABIL for Bandra East MIG project
Nov 15, 2014
Mumbai: Real estate player DB Realty Limited signed a joint development agreement with Pune based-Avinash Bhosale Group (ABIL) for Bandra East MIG project
Building dept circulars must go online: HC
Nov 14, 2014
MUMBAI: The Bombay high court directed the BMC to be entirely transparent and place online all circulars issued by its building proposal department

Latest Realty News Of State

Realty Talk's