Haryana Government Revises Policy on Property Registration in Licensed Colonies
The Haryana government has agreed to revise its policy on property registration in licensed colonies, following a court petition by residents. This move comes as a relief to thousands of families who have been denied registration due to a 2009 administrative circular. The revision is expected to benefit at least 500 families in Sushant Lok 2 alone.
- •The Indian economy is facing a significant challenge in the form of a property registration crisis, which has been ongoing for over 15 years.
- •Homeowners in Suncity township, off Golf Course Road, have been denied property registration despite paying the full sale consideration, taking possession, and regularly paying municipal taxes.
- •This issue stems from an administrative circular issued in 2009, which limits the registration of residential plots to those measuring 180 sq yards and above.
The Indian economy is facing a significant challenge in the form of a property registration crisis, which has been ongoing for over 15 years. Homeowners in Suncity township, off Golf Course Road, have been denied property registration despite paying the full sale consideration, taking possession, and regularly paying municipal taxes. This issue stems from an administrative circular issued in 2009, which limits the registration of residential plots to those measuring 180 sq yards and above. The crisis extends far beyond Suncity, with hundreds of families across private plotted colonies in Gurgaon facing similar issues.
Key Provisions and Legal Framework
The Haryana Development and Regulation of Urban Areas Act, 1975, was amended in September 2009 to introduce Section 3-C, which explicitly permits the registration of independent residential floors in licensed colonies without prescribing any minimum plot size restriction. However, the authorities have been invoking the 2009 administrative circular to deny registrations, citing it as a valid reason. The homeowners have argued that this circular is obsolete and that the state government's amendment to the Act supersedes it. The Haryana Development and Regulation of Urban Areas Act 1975 and its amendments are crucial in understanding the legal framework surrounding this issue.
- ▸The amendment introduced Section 3-C, which permits registration of independent residential floors
- ▸The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 provides a framework for land acquisition and compensation
- ▸The National Urban Housing and Habitat Policy 2007 aims to provide affordable housing to all
- ▸The Real Estate (Regulation and Development) Act 2016 regulates the real estate sector
- ▸The Benami Transactions (Prohibition) Amendment Act 2016 prohibits benami transactions
The Numbers That Matter
The crisis has significant economic implications, with the state government losing revenue due to the delay in property registrations. The homeowners are also facing difficulties in selling their properties or availing of mortgage loans, which is affecting their financial stability. The Goods and Services Tax (GST) and Stamp Duty are also relevant in this context, as they impact the overall cost of property transactions.
Significance and What Changes Now
The Punjab & Haryana High Court's decision to hear the petition filed by the Suncity homeowners has brought hope to the affected families. The court's ruling will have significant implications for the property market in Gurgaon and beyond. The Indian Stamp Act 1899 and the Registration Act 1908 are relevant in this context, as they govern the registration of properties and the payment of stamp duty.
Did You Know? The delay in property registrations is not only affecting the homeowners but also the state government, which is losing revenue due to the delay. The Comptroller and Auditor General (CAG) has highlighted the need for efficient property registration systems to ensure transparency and accountability.
Way Forward
The Indian government needs to address the property registration crisis urgently, as it has significant economic and social implications. The Ministry of Housing and Urban Affairs and the Ministry of Law and Justice must work together to resolve the issue and provide relief to the affected families. The National Housing Bank and the Housing and Urban Development Corporation (HUDCO) also have a crucial role to play in addressing the housing finance needs of the affected families.
Concepts Mentioned
Indian Stamp Act 1899
The Indian Stamp Act 1899 is a legislation that regulates the use of stamps in India, imposing a tax on documents and instruments to prevent forgery and ensure authenticity. This act holds significant importance in the country's financial and legal systems. For instance, it requires a stamp duty on property transactions, which varies by state.
Stamp Duty
Stamp duty is a tax on documents, significant for revenue generation. It is levied on property transactions, for example, a 5% duty on property purchases in some regions.
Goods and Services Tax (GST)
GST is a consumption-based tax levied on goods and services. It signifies a unified tax system, replacing multiple indirect taxes. India implemented GST in 2017.
Benami Transactions (Prohibition) Amendment Act 2016
The Benami Transactions Prohibition Amendment Act 2016 is a law that prohibits illegal property transactions. It significantly strengthens the original 1988 Act. The Act imposes a penalty of up to 25 percent of the fair market value.
Real Estate (Regulation and Development) Act 2016
The Real Estate (Regulation and Development) Act 2016 is a legislation aimed at regulating the real estate sector in India, protecting homebuyers' interests, and promoting transparency and accountability among developers. It establishes Real Estate Regulatory Authorities (RERAs) to oversee project registration, compliance, and dispute resolution. For instance, it mandates a 70% deposit in a separate escrow account for projects.
National Urban Housing and Habitat Policy 2007
The National Urban Housing and Habitat Policy 2007 is a comprehensive framework aimed at addressing the housing needs of urban India. It emphasizes the importance of affordable housing, slum rehabilitation, and sustainable urban development. For instance, the policy aims to provide 20 million urban housing units by 2020, with a focus on low-income groups and slum dwellers.
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, is a law ensuring fair compensation to landowners. It signifies a shift towards more equitable land acquisition. The Act mandates a minimum compensation of four times the market value.
Haryana Development and Regulation of Urban Areas Act 1975
The Haryana Development and Regulation of Urban Areas Act 1975 is a legislation aimed at regulating urban development in Haryana, India. It empowers the state government to acquire land for urban development and provides for the creation of urban development authorities. The Act has been instrumental in shaping the urban landscape of Haryana, particularly in cities like Gurgaon and Faridabad.
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