Kerala kicks NRIs - No land registration for NRIs
May 7th, 2007
Kerala Government has introduced a new law which effectively prevents any NRI (non resident indian) from buying land. As per the new law which was implemented in a hurry, to register land in your name, you need to be present at the registration office at the time of registration. Also a photo and fingerprints are needed for the land registration.
All this rules are in place to prevent benami transactions. Now consider this. Registration department in Kerala is one of the most corrupt departments. The only people who are going to benefit from all this is corrupt government employees. They will now charge more bribe to register benami transactions!
When will our rulers realize that laws have no effect until we root out corruption!
India is a country where by paying money you can even get an arrest warrant against The President of India!
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May 8th, 2007 at 12:20 pm
Actually the new law is good. I agree the Registration department is neck deep in correction. But that is not a justification. If the new law helps in reducing Benami purchases, it will be good.
I would blame the NRI’s for the real estate mafia. Things have come to a stage where an average income Malayali cannot even dream of buying property in Trivandrum or Cochin.
Lets give sometime before we pass our judgements
May 29th, 2007 at 3:54 pm
as per the new law people like me who is workig hard in outside india need a small land to construct a house is become impossible since the sponsor will not give leave to go to india to register the land in that case what people like us to do to buy a piece of land to have a house to live instead of living in rent house. it means those people live outside india dose notneed to have a place to live our fate is to work hard and live in the platform when come back home
July 24th, 2007 at 1:59 pm
If I send a “power of attorney” to my mother, why should she not be able to sell my property or buy a property in my name? The requirement of fingerprinting can be satisfied easily by making it mandatory on the “power of attorney” document. The law infringes on the fundamental rights of a citizen.
Instead, dumb ideas like sending finger prints by electronic mail is being mooted. How do they propose to verify the identity when a mail arrives? I can send a mail and make it appear to originate from any email address. Digital certificates and other electronic identity checking methods will have to be implemented. Are our sub registrar offices (SRO) equipped to handle these?
Regarding benami: Benami means that one person buys property in another’s name. The law does not prevent me buying a house in my mother’s name with my money. Please note that if a property is registered in person B’s name, person B has absolute authority over the property even if person A paid the money for it. If person A covers the money trail in a way that it cannot be traced back to him, that is a real benami transaction. Person A uses a “out of law agreement” (usually loyalty together with threat of force) over person B to enjoy possession of the property. This law cannot do anything to prevent such transactions. In fact, I have no idea why they should be prevented; instead, unaccounted cash detection should be pursued.
1. All land transactions shall have the land be valued by an authorized bank. The title shall also be checked by this institution.
2. All land transactions done below this valuation shall be reported immediately to the Income Tax department by the bank. IT department can use this information to track identify possible unaccounted cash transactions.
3. The bank shall act as the “escrow agent” who transfers the money to the seller, when the title deed is ready. The registration of the title shall be performed by the bank.
4. The bank shall charge any fees up to a limit for these services. If there is a loan involved, banks may waive or reduce these charges. Also, competition between banks will ensure that the charges are market-driven.
5. A bank shall face punitive action of being barred from providing property loans, if it is found to value property low for the benefit of its customers. Criminal cases for not performing their fudiciary responsibility may be charged against top bank officials in such cases.
Limiting investments with unaccounted cash can go a long way in achieving this purpose.
1. Reduce tax for account payee cheques, demand drafts, card payments, while increasing tax for cash payments
2. Cash deposits into financial institutions (public or private) shall demand a document proving source of funds — a copy of a sale deed, for example. Financial institutions failing to comply with this must be penalized heavily.
3. A PAN should be made mandatory for every financial account — bank, chit funds, financial markets etc. Every effort has to be made to prevent multiple PAN to the same person. If a person does not have a PAN, every financial institution shall have the facility to let them acquire one.
In my opinion, land owner should be allowed to sell his land to anyone at any price, and pay tax only for the transaction price. Whether an unaccounted money transfer is involved should be investigated by the Income Tax department.
August 27th, 2007 at 7:49 pm
I am planning to buy a 3 bedroom flat in Trichur corporation which cost 15 lakhs.
Please advise me how much I have to pay as Registration fee, service tax, VAT, KSEB, KWA, Employee’s Welfare fund, etc. etc.
Your response will be highly appreciated.
August 27th, 2007 at 7:50 pm
I am planning to buy a 3 bedroom flat in Trichur corporation which cost 15 lakhs.
Please advise me how much I have to pay as Registration fee, service tax, VAT, KSEB, KWA, Employee’s Welfare fund, etc. etc.
Your response will be highly appreciated.
December 19th, 2007 at 2:15 pm
Dear Sir
I have given advance to a land and its registration was fixed in March 2008. But I have recently heard that the registration fees will be increased from January 2008 onwards. Please can you advice if this is true so that I can make the registration before December 2007 ends.
With best regards
Baiju S
January 19th, 2008 at 10:01 am
hello Baiju or any one, any NRIs got experience with registering/selling a land while out side? I heard that, it only require to have photo and thump impressions on Mudrapathram. No need to be phisically present. any one? pls share exp
March 6th, 2008 at 3:23 am
I am in USA for last 1.5 yrs.Can I purchase a piece of land in Kerala in my name without going there. Can I authorise my mother to purchase in my name. Is my presence an absolute necessity?
May 6th, 2008 at 9:49 pm
Is this new law also implemented in Tamilnadu?
I want to buy a land in TN. I heard such things about TN also. Can you please clarify/confirm?