Fraudulent Registrations: New Section 77A of the Registration Act Allows District Registrars to Cancel Fake Property Documents | மோசடி பத்திரம் ரத்து செய்யச் சட்டம்

Last Updated on 4 weeks by ChennaiRealties

Fake property documents

Fake property documents are fabricated or altered papers that misrepresent the ownership and status of a property. Impersonation, forgery, alteration, and fraudulent representations are some of the tactics employed by those doing it.Fake property documents are fabricated or altered papers that misrepresent the ownership and status of a property.  Impersonation, forgery, alteration, and fraudulent representations are some of the tactics employed by those doing it.

Fraudulent registration

These fake documents may be used to sell properties that do not belong to the seller. In other words, a fraudulent registration is one where the property is sold/registered by someone who has no legal right whatsoever to the property.

However, property disputes within families involving alterations to wills or disputes over legal heirs claiming ownership of property by others do not fall under fraudulent registration, according to this amendment. These issues are typically addressed in civil court regarding property titles.

Similarly, if a neighbor accidentally or intentionally registers a parcel of land slightly larger than their own, which includes a portion of their neighbour’s property, it may not be classified as fraudulent registration.

These matters typically fall under Title Deeds investigation rather than forgery.

Likewise, if a neighbor unintentionally or intentionally registers a slightly larger area that includes part of their neighbor’s property, it may not be classified as a fraudulent registration.

These matters fall under Title Deeds investigation rather than forgery.

Combating fraudulent registration

Fraudsters fraudulently register a property, and the remedy available thus far is for the affected individual to approach the courts to cancel the property registration.Though criminal actions may be initiated by the affected persons or by the Registration Department itself, the power to cancel the once registered forged document rests only with the courts.

Court cases involving property disputes can be notoriously prolonged, potentially lasting for years or even generations. Needless to say, this extended timeframe can cause significant hardship for the affected parties.

Amendments to the Registration Act,1908

The Registration Act, 1908 is the law that governs the registration of all immovable properties in India.

The Madras High Court has advised the government to bring in suitable legislation to empower the authorities to cancel the documents once the inquiries find that the documents are fake/forged.

It was in this background that, in September 2021, the Tamil Nadu Assembly passed a bill to amend the Registration Act, 1908, to give the District Registrar of the Registration Department the power to cancel fake documents.

New Section 22-B

The Amending Act of the Tamil Nadu Legislative Assembly received the assent of the President on the 6th August 2022. It was notified by the Tamil Nadu Government on 16th Aug 2022.

With this amendment, a new section 22B has been inserted , which gives powers to the Registering Officer to refuse to register forged documents.

The section reads as follows:

“22-B. Refusal to register forged documents and other documents prohibited by law.— Notwithstanding anything contained in this Act, the registering officer shall refuse to register the following documents, namely:—

(1) forged document;

(2) document relating to transaction, which is prohibited by any Central Act or State Act for the time being in force;

(3) document relating to transfer of immovable property by way of sale, gift, lease or otherwise, which is attached permanently or provisionally by a competent authority under any Central Act or State Act for the time being in force or any Court or Tribunal;

(4) any other document as the State Government may, by notification, specify.”.(4) any other document as the State Government may, by notification, specify.”.

It is explained that the meaning of forged documents is as defined in Section 470 of Indian Penal Code.

IGR’s Circular

The Inspector General of Registration through Circular  Letter No:-33760/l.h/2022 dated.27.09.2022 gave detailed list of forged documents that can be refused by the registering authority.

Section 22A was already in force, which gives the powers to the registering officer to refuse powers to register certain other documents.

The lists of documents that are covered by the existing section 22A and the new section 22B are given below.

List of Fraudulent Documents

Section 22A

• Land belonging to Governments, Local Bodies, CMDA and DTCP
• Land Belonging to HR&CE and Mutt
• Bhoodan Lands
• Wakf Board Lands
• Unapproved House Sites (Except those registered as house sites before 20-10-2016)
• Cancelled Deeds without the consent of the claimants

Section 22B

Forged Documents

1. Document registered through impersonation

2. Property claimed through forged documents like patta, tax receipt, death certificate, legal heir ship certificate etc.

3. Property claimed through previously forged registered document

Other documents that are prohibited by law that are also covered under Section 22B are:

 Document relating to transaction, which is prohibited by any Central Act or State Act for the time being in force.

Document relating to transaction, which is prohibited by any Central Act or State Act for the time being in force

Registering the documents containing attached properties:

Document relating to transfer of immovable property by way of sale, gift, lease or otherwise, which is attached permanently or provisionally by a competent authority under any Central Act or State Act for the time being in force or any Court or Tribunal. 

Document relating to transfer of immovable property by way of sale, gift, lease or otherwise, which is attached permanently or provisionally by a competent authority under any Central Act or State Act for the time being in force or any Court or Tribunal. 

Any other document as the State Government may, by notification, specify

Section 77A

Though the above two sections give the registering officer the power to refuse registration, if he/she is convinced that the documents are fake/forged, the power to cancel the registered documents was not there in the Registration Act. The 41st Act of 2021 inserted the new section 77A to obviate this. The President gave his assent to the Act in August 2022.

This section 77A reads as follows:

“77-A. Cancellation of registered documents in certain cases.— (1) The Registrar, either suo motu or on a complaint received from any person, is of the opinion that the registration of a document is made in contravention of section 22-A or section 22-B, shall issue a notice to the executant and all the parties to the document and parties to subsequent documents, if any, and all other persons who, in the opinion of the Registrar, may be affected by the cancellation of the document, to show cause as to why the registration of the document shall not be cancelled. On consideration of reply, if any received therefor, the Registrar may cancel the registration of the document and cause to enter such cancellation in the relevant books and indexes.

(2) The power under sub-section (1) may also be exercised by the Inspector General of Registration.”

Cancellation Process Under Section 77A

The heart of the amendment lies in Section 77A, granting the District Registration Officer (DRO) the authority to cancel registered documents suspected to be fake or forged. This section mandates that the DRO must issue notices to all parties involved, including the executant and all subsequent document parties, to show cause as to why the document should not be canceled. After due consideration, the DRO may cancel the document and record the cancellation.

The procedure for cancellation were given in the Inspector General of Registration Circular No 1 of 2023. This detailed Circular was necessitated by Court Judgment.

Guidelines for Cancellation

The Madras High Court has outlined a clear procedure for the DRO. It emphasizes that the cancellation process should not be delayed and that affected parties should not be directed to approach the court for such cases. The Court underscores the need for timely action and a dedicated register for complaints.

It was in the context of this court directive, the Inspector General of Registration has issued circulars detailing the procedure to be followed, vide circular No 1 of 2023

Appeal Mechanisms, Punishments, and More

Section 77B introduces an appeal mechanism. Those aggrieved by the Registrar’s order under Section 77A can appeal to the Inspector General of Registration or the State Government, depending on the situation. Additionally, the amendment prescribes punishments, including imprisonment or fines, for officials involved in fraudulent actions.

Appeals may be made to the State Government within 30 days of the date of the order.

This inquiry at the District Registrar’s office is only regarding the fake or forged documents. No inquiry should be conducted regarding the Title Deeds of a property. That is the job of the courts.

In case the the property was registered in another district with forged documents, the complaint under section 77A shall be filed in the district where the property is situated.

The punishment for registering authority for registering forged documents are mentioned in Section 81-A. Punishment for persons belonging to a firm or company is provided in Section 81-B.

Effect of the Amendments: More Than 10,000 Complaints, 1,000+ Fraudulent Registrations Cancelled

It appears that more than 10,000 complaints have been received so far on this issue. And more than 1,000 fraudulent registrations have been cancelled so far.

In a recent case that was widely reported, 1.3 acres of land in Arcot Road, Kodambakkam, Chennai, worth ₹100 crores, was registered in the Radhapuram sub-registrar office through forged documents. The complaint was filed by an NGO, Arapor Iyakkam, in the South Chennai District Registrar Office, and the registration was cancelled.

Conclusion

The amendment to the Registration Act is a welcome step towards curbing fraudulent registration of property documents. It provides a much-needed mechanism for affected parties to get their property back if it has been registered fraudulently. The DROs and the Inspector General of Registration must be proactive in implementing the amendment and ensuring that fraudulent registrations are cancelled without delay.