Karnataka moots changes to registration law to protect property buyers, put an end to frauds
ET Bureau August 13, 2025 07:00 PM
Synopsis

Karnataka is set to revamp its property registration system to combat fraud and protect homebuyers. The proposed amendment to the Registration Act, 1908, includes mandatory due diligence for sub-registrars and compulsory registration of General Power of Attorney transactions. Real-time integration of digital land records aims to reduce litigation and improve transparency in the state's property market.

Karnataka is poised to overhaul its century-old property registration system in a reform that could change how real estate deals are conducted in the state. The proposed amendment to the Registration Act, 1908, is designed to crack down on fraudulent transactions, protect homebuyers from title disputes, and improve transparency in one of India’s most complex and high-value property markets.

With mandatory due diligence for sub-registrars, compulsory registration of General Power of Attorney (GPA) transactions, and real-time integration of digital land records, the Bill aims to sharply reduce litigation, corruption, and market instability, rewriting the rules for developers, investors, and ordinary citizens alike.

Revenue Minister Krishna Byre Gowda, who is helming the reform, will table the Bill in the ongoing Legislature session, and said the measure is necessary to protect citizens and bring “title clarity” to the market.

“Unregistered GPAs have been misused in many cases. There are forgeries, litigations, and illegal transactions. People have bought property only to face claims that the GPA was fake or fraudulent. This creates instability in the property market and makes common people victims, some even losing their purchased properties,” the minister told ET. “From now on, any GPA used to transact an immovable property must be registered. This will reduce fraud, corruption, and disputes, leading to a more stable market and protecting ordinary citizens.”

The heart of the amendment is a provision that makes it compulsory for sub-registrars to verify property ownership, check for encumbrances or ongoing litigation, and ensure the land is not restricted, such as government property, encroached land, or disputed plots.

Previously, sub-registrars primarily served as record-keepers, registering documents submitted by buyers and sellers without active verification. This passive approach allowed fraudulent deals to pass through unchecked, leaving citizens entangled in lengthy legal battles or losing investments entirely.

“The amendment takes important steps towards improving transparency in property transactions. Making the registration of powers of attorney compulsory and removing exemptions for government grants will close long-standing gaps, reducing the risk of disputes in cases involving unregistered PoAs or such grants. The move to enable digital transmission of certain government instruments is equally significant for improving traceability and record-keeping. Together, these measures should strengthen buyer confidence,” said Sunil Pareek, Executive Director, Assetz.

A key feature of the Bill is integrating digital land records and property software platforms with the registration process. This would enable real-time verification of survey numbers, zoning details, ownership history, and mutation status at the time of registration.

Officials believe this will be a game-changer for urban centres like Bengaluru, Mysuru, and Hubballi, where illegal constructions and unauthorized layouts have proliferated. “The integration of digital land data marks a significant leap in safeguarding property transactions. By empowering officials to flag irregularities at the registration stage, the Bill adds a strong layer of protection, especially in fast-growing urban markets,” said Sankey Prasad, Chairman & Managing Director, Middle East & India, Colliers.

For buyers, the law promises greater transparency. Citizens could soon verify key property details online before purchasing, reducing dependence on brokers and middlemen. “This amendment can empower homebuyers like never before,” said Navin Dhanuka, Director, ArisUnitern RE Solutions. “If executed well, it will cut fraud, curb reliance on middlemen, and instil confidence in transactions. The challenge will be smooth rollout and proper training for all stakeholders.”

Once passed, the law will be implemented in phases, starting with high-risk urban zones where disputes are most common. With this reform, Karnataka aims to set a benchmark for modern, digitised, and accountable property registration in India, balancing ease of doing business with citizen protection in one of the country’s fastest-growing real estate markets.
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