States Try To Put An End To Property-Related Frauds

Over 30,000 homebuyers who invested in various projects of Jaypee have found themselves in utter confusion after news spread that the real estate major is going bankrupt. A recent report said that some affected buyers were being lured by fraudsters to transfer their property for another one and the money could be adjusted. While fresh cases of fraudulent practices keep surfacing in real estate, here's what various governments have been up to curb property related scams:

• The Delhi government's revenue department is seeking to amend the Registration Act, 1908, claim reports. As a norm, they wish to make sure that property papers kept by banks in lieu of loans shouldn't be duplicated as tricksters are able to manage coloured photocopies of these duplicate copies, and are sometimes able to sell the property even when the originals are with banks. 

• The Andhra Pradesh Information Commission has directed the Registration and Stamps Department of the Telangana government to come up with guidelines that would check fraudulent property registrations. This is similar to what Tamil Nadu and Uttar Pradesh governments had done a few years ago. 

• The Chennai administration has officially communicated that land for properties on marshlands of Velachery and Pallikarnai would not be registered to protect the eco-sensitive zone. This is also a warning for those who were trying to pitch land and its value in these hotspots. It was noticed that fraudulent papers were used to sell unauthorised land here. 

• Recently, Bihar Chief Minister Nitish Kumar had demanded that the Money Laundering Act should expand and delegate power to the states to seize property worth up to Rs 5 crore amassed through fraudulent means. So far, the Enforcement Directorate is delegated with this task. A decision is yet to be taken in this regard. 

• In Maharashtra, the government is looking at some amendments that would help speedily sell off properties that were attached because these were part of investment frauds. Amendments would be introduced to recover the money to pay off the duped investors. The government is also closely monitoring individual cases of fraud. 

• Buying a property in Himachal Pradesh may not have been easy in the past but a recent verdict of the High Court has directed that suitable amendments be made in the HP Tenancy and Land Reforms Act, 1972 and 1975, to allow purchase of any land, agricultural or non-agricultural, by non-farming families living in the state. This would bring about clarity in the investment climate in the region, thereby curbing any chances of fraudulent ways of selling and acquiring property. 

• In order to check property frauds among those who prefer to buy homes uphill and often get duped, the Chandigarh Housing Board has moved outside the city limits to develop at Mullanpur and Kandaghat, near Solan in Himachal Pradesh.

“Due to many fraudulent property dealers, it is expected that buyers will rely on the CHB. People often fall into the trap of grey market during investments when they are looking for flats in Himachal Pradesh. But they rely on our deliverance," The Economic Times quoted CHB Chairman Maninder Singh as saying. 

• The Karnataka government may, say media reports, completely stop issuing B-Khata properties in an attempt to curb frauds and confusion. As of now, the Bruhat Bengaluru Mahanagara Palike (BBMP) is planning to revive the Khata Mela, wherein Khatas would be registered at your doorstep, an initiative that was discontinued in 2015. If you are someone who is confused about whether your property is A Khata or B Khata, you could simply provide the proof of ownership and obtain the certificates. Since the authority is directly involved here, there are minimal chances of fraud.