CHENNAI: The government has amended the Registration Act, 1908, following a Supreme Court decision that invalidated a key provision intended to curb fraud in property transactions.
In an earlier attempt to address forgery, impersonation and other irregularities in the registration of immovable property, the state had introduced Rule 55-A to the Tamil Nadu Registration Rules, 1949. Framed under Section 69 of the Registration Act, the rule mandated that parent document or other prescribed records be produced at the time of registration to verify ownership.
However, in a judgment delivered on April 7, the Supreme Court ruled that Section 69 does not confer the authority to enact rules inconsistent with the central legislation. As a result, the court declared Rule 55-A(i) ultra vires to the Registration Act, 1908.
In response, the Tamil Nadu government has moved to formally amend the central Act through a state-specific modification, aiming to embed safeguards against fraud within the legal framework. A new Bill has been introduced to codify these protections, strengthening oversight of property registrations and offering greater security to buyers and property owners.
Currently, the provisions of the Registration Act, 1908 (Central Act XVI of 1908), do not permit a registering officer or any other authority to cancel a document once it has been registered, even on grounds of fraud or impersonation, posing serious hardship for victims of fraudulent transactions.
To address these vulnerabilities, the Inspector General of Registration has issued multiple circulars directing registering officers to verify original title deeds, encumbrance certificates, and revenue records before processing property registrations.
The Madras High Court has also instructed the government to formalise these safeguards by incorporating the directives of the inspector general into the regulatory framework.
The proposed amendments are intended to provide a statutory basis for these measures, aligning state practice with judicial expectations and offering stronger protection to the public against fraud.