Institutions like the RBI and the IBA (the Indian Bankers’ Association) should step in and ensure that recommendations must be made for improvements in states that are lagging behind.
G Shyam Sunder, a Chennai-based advocate, has travelled to 18 states in India to compile the different procedures and practices followed in the registration, revenue and town and country planning department. In his book titled 'Property Registration, Land Records and Building Approval Procedures Followed in Various States in India', Shyam Sunder points out to the benefits of standardising procedures. Edited excerpts of his interview with ET: In your travel to most of the states
in the country, what are the interesting trends that you observed in the way these three departments function?
The procedures, which are being followed in the three departments - registration, revenue and town and country planning departments - these differ from state to state. There are only a few states which follow very good procedures. Unfortunately, in these three departments, most states have not accorded public planning measures, which will be useful not only for the people who buy property but also to protect the interest of the bankers. I feel that time has now come for adopting standardised practices all over India. Institutions like the RBI and the IBA (the Indian Bankers' Association) should step in and ensure that recommendations must be made for improvements in states that are lagging behind.The revenue department should issue a computerised encumbrance certificate where they need to record everything such as what are the transactions that have taken place on any particular property for, say, x number of years. Another friendly measure should be viewing the value of a property online.Third, in many states, the website of the registration department, it doesn't mention what is the prevailing stamp duty and what are the prevailing registration fees payable in that particular state. Fourth, any mortgage being created in favour of banks and financial institutions within that particular state has to be either compulsorily noted or compulsorily registered with the sub-registrar office. This has a three-fold advantage. Firstly, the one who buys the property gets to know that the property is not getting charged or mortgaged anywhere. Second, the advantage from the bankers' point of view is that their interest is secure. The third advantage is that the state gets additional review by way of registration; Unfortunately, only six states in India (of the 18 states which are being covered in my book), follow this practice.Andhra has two good public friendly measures in the registration department. One, the encumbrance certificate is issued for a very long period from 1.1.1980 onwards and no other state in India has got the issuance of encumbrance certificate for such a long duration.