The Maharashtra state government is seeking approval from the Central government for the proposed amendments to the Registration Act 1908. The amendments seek to empower sub-registrars to scrutinize documents for violations of laws during registration. The amendments aim to address violations of real estate laws in registration of property documents. A circular issued earlier on the same lines was struck down by the Aurangabad bench of Mumbai High Court. The state has thus sought to amend the law itself. Critics, including the Avdhoot Law Foundation, express concerns about potential misuse of the additional powers. The proposal aligns with broader efforts to modernize real estate practices and regulatory standards in Maharashtra.
In August last year, the State Government proposed amendments to the Registration Act 1908 in a bid to give more power to sub-registrars to check documents at the time of registration for any violation of central or state laws. Registration department officials conferred that the Central Government will make amendments to the Central Registration Act to allow these amendments. Besides Maharashtra, other states such as Tamil Nadu and Karnataka have placed similar proposals seeking amendments to the Central Registration Act.
The proposal was cleared by the Maharashtra legislative assembly and council at its meeting on July 25 and August 3, 2023 and subsequently sent to the judicial division of the Ministry of Home Affairs through the governor's office. This was necessary because the Registration Act 1908 is a central act and therefore the state cannot make changes to it.
According to department officials, some of the recommendations included amending Section 18(a) to provide sub-registrars additional power to refuse the registration of certain documents related to transactions prohibited by any state or central law. Also, an amendment to the Section 21 of the Registration Act was proposed to empower the state government to bring about the rules needed for the description of the property in the document.
These amendments follow the violations to the Maharashtra Real Estate Regulatory Act, 2016, and the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947 in some property documents registered over the last two years. The registration department has already directed all the offices to check all the documents for such violations in the last two years.
In 2022, a petition was filed before the Aurangabad Bench of the Mumbai High Court challenging the circular issued by the inspector general of registration (IGR), Maharashtra state based on Rule 44 (1) (i) of the Maharashtra Registration of Rules 1961. The circular imposed additional conditions on the person seeking registration on sale deeds for lands of a certain size.
The Aurangabad bench of Bombay High Court struck down Rule 44(1) of the Maharashtra registration rules stating that the registering authority will not reject any document on the ground of non-compliance with the conditions imposed under Rule 44(1)(i) while registering the document under Section 34 r/w. Section 35 of the Registration Act,1908 as it is contrary to the Registration Act, 1908. Now, a person seeking registration of sale deeds for a land of a certain size will not have to produce a No Objection Certificate (NOC) for fragmentation of the land from the competent authority. To overcome the limitations imposed on the registration process by this judgement, the state has proposed changes in relevant sections of the Registration Act 1908.
The proposed amendments are part of broader efforts to streamline and modernize real estate practices, addressing industry concerns and aligning with evolving regulatory standards. As the centre's decision is awaited, the real estate industry, legal professionals, and property owners alike seek clarity on the amendment's status as it has the potential to shape the future of property transactions and registrations in the state.
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