Circular, Letter No.20217/U1/2021, Fraudulent Registration Complaints
The Tamil Nadu Registration Department, through the Inspector General of Registration, issued Letter No.20217/U1/2021 dated 9 July 2021, directing registration officials how to record and act on final findings that property transactions are fraudulent. It reiterates the procedure in Circular No.41530/U1/2017 dated 31 July 2018, while noting that the earlier Circular No.67 dated 3 November 2011, which allowed annulment of fraudulent registrations, had been withdrawn.
What the circular governs
Letter No.20217/U1/2021 dated 9 July 2021 governs complaints about registrations allegedly completed through impersonation, forged records or false documents. The Inspector General of Registration directs District Registrars and Deputy Inspectors General of Registration to follow a mandatory procedure when conducting enquiries under Section 68(2) of the Registration Act, 1908.
The instructions apply after the competent authority finds a transaction fraudulent and that finding becomes final. Their purpose is to ensure that the finding appears in registration records and is visible to people dealing with the property.
Background and change in procedure
Circular No.67 dated 3 November 2011 had prescribed a process for handling fraudulent registration complaints and annulling registrations when fraud was proved. That circular was later withdrawn with immediate effect following the Supreme Court judgment identified in the document as Civil Appeal No.6673 of 2014. District Registrars were also instructed to recall annulment orders previously passed under that circular.
Letter No.20217/U1/2021 dated 9 July 2021 instead reiterates the recording and registration safeguards prescribed in Circular No.41530/U1/2017 dated 31 July 2018.
Required action when fraud is proved
District Registrars and Deputy Inspectors General of Registration must:
- Pass reasoned speaking orders through formal proceedings.
- Direct the Registering Officer to enter in index-II that the document was found fraudulent, identifying the District Registrar proceedings and briefly stating the finding.
- Place the same note as a signed footnote on the relevant filed copy of the document.
- For a scanned document, place the signed note on separate white paper and link it to the main document.
- Direct that no further document may be registered on the basis of the fraudulent document.
- Allow the genuine owner to proceed with further registration despite the fraudulent registration concerning the property.
Why it matters to property owners and buyers
A final fraud finding must be recorded in the relevant register and reflected in the Encumbrance Certificate. This is intended to warn an innocent third party before entering into a transaction involving a document already declared fraudulent.
Deputy Inspectors General and District Registrars must check during visits to Sub Registrar Offices that the required entries have been made. Failure by officials to follow the instructions is to be viewed seriously.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Will a final finding of fraudulent registration appear in the Encumbrance Certificate?
Yes. When the competent authority's finding has become final, the necessary entry must be made in the index and reflected in the Encumbrance Certificate.
Can another document be registered using a document declared fraudulent?
No. The District Registrar or Deputy Inspector General of Registration must direct the Registering Officer not to permit further registration based on the fraudulent document.
Can the genuine owner register another transaction despite the fraudulent registration?
Yes. The genuine owner must be allowed to proceed with further registration irrespective of the fraudulent registration concerning the property.
Does Letter No.20217/U1/2021 allow the District Registrar to annul a fraudulent registration?
The letter states that Circular No.67 dated 3 November 2011, which prescribed annulment when fraud was proved, was withdrawn. It instead requires final fraud findings to be recorded in index-II, noted on document copies and reflected in registration records.
