Is Aadhaar card mandatory for the registration of properties?

Introduction

The glitzy world of real estate comes with its share of fraudulent practices because of the bureaucratic process. Recently in Tamilnadu, a scam was uncovered when a government official created a fake Power of Attorney (POA) document of a property worth over four crores. The owner of the property was residing abroad. When the encumbrance certificate or the document that establishes clear ownership without any liability was applied, the fraud came to light.

With a view to arresting such fraudulent practices of properties both across the state and locally including residential plots in Chennai, the government decided to implement the use of Aadhar card mandatory since it is a 12-digit unique identification number. A proposal has been put forward to amend the Tamilnadu Registration Rules to include the mandatory use of Aadhar to authenticate the real owner of a registered property.

Implementing Aadhar for Property Registrations

The implementation of Aadhar as an identity proof works to a number of advantages:

1. –  Seeks to bring down the rate of fraudulent practices
2. – Establish transparency in property registration practices
3. – Establish the actual owner of a registered property
4. – Abolish the practice of getting two individuals to witness land registration
5. – Ensure tax is paid on registered properties since Aadhar is linked to PAN card

In Tamilnadu, over 95% of the population have Aadhar coverage. In cases, where the individual does not have an Aadhar card, then the procedures specified in the Unique Identification Authority of India (UIDAI) will be applied. For those with an Aadhar card, it has been proposed that the biometric devices will be connected to the UIDAI server to verify the identity of the seller. While there has been no clear-cut government order to this effect, however, the process of digitization of property records is already well on its way in a number of states across the country. Aadhar card has to be linked to the registered properties also. Be it buying properties on the GST Road, residential plots in Chennai, or residential plots near Mahindra World City, your Aadhar card details have to be provided as proof of ownership and identity.

Going forward, states and union territories have made it mandatory for buyers and sellers of properties to furnish their Aadhar card details and avoid benami property transactions. In states such as Rajasthan, Maharashtra, and Gujarat, the government has gone one step forward by setting up online portals that allow owners to submit their online application of registered properties. This will also help arrest the distress sale of properties during national calamities.