Legislative Assembly Bill No. 27 of 2021, Registration (Tamil Nadu Second Amendment) Bill, 2021

What the Bill changes

Legislative Assembly Bill No. 27 of 2021, published by the Government of Tamil Nadu on 2 September 2021, proposes stronger controls against forged documents and unlawful property registrations. It applies throughout Tamil Nadu and states that it would come into force immediately if enacted.

The stated reason is that forged sale deeds and other fraudulent documents have been used to deprive lawful owners of property. The existing registration law was considered insufficient because registration authorities lacked express power to cancel documents already registered because of fraud or impersonation.

Documents that may be refused

The proposed amendments require a registering officer to refuse registration of:

• A forged document. The Bill links this meaning to the definition in the Indian Penal Code, 1860.
• A document concerning a transaction prohibited by a Central or State law in force.
• A document transferring attached immovable property by sale, gift, mortgage or another method, where the attachment was made permanently or provisionally by a competent authority, court or tribunal under a law in force.
• Any category of document notified by the State Government.

Cancellation and appeals

If the Registrar believes that a document was registered contrary to the restrictions in the Registration Act, 1908, the Registrar may act independently or on a complaint. The Registrar must issue notice, ask why the registration should not be cancelled, consider any reply and conduct an inquiry before cancelling it. The cancellation must then be recorded in the relevant registration books and indexes.

The Inspector General of Registration may also exercise this cancellation power independently. A person affected by a Registrar's cancellation order may appeal to the Inspector General of Registration within thirty days. An order made by the Inspector General of Registration under this power may be appealed to the State Government within thirty days.

Who may be affected

Property owners, buyers, lenders, companies and professionals handling registrations may be affected where a document is alleged to be forged, legally prohibited or connected with attached property. The Bill also creates penal consequences for registering prohibited documents, while protecting acts done in good faith. Where a company commits an offence, persons responsible for its business may also be proceeded against, subject to the stated defences concerning lack of knowledge and due diligence.