Three Years Imprisonment for Registering Fake Documents: New Bill Passed in Legislative Assembly
Three Years Imprisonment for Registering Fake Documents:
New Bill Passed in Legislative Assembly
Chennai: A bill amending the Registration Act to include provisions for the cancellation of fake documents was passed by a voice vote in the Legislative Assembly.
This law, known as the Registration (Tamil Nadu Second Amendment) Act, 2021, will come into immediate effect. A new section, 22B, has been added to this law, which empowers the registering officer to reject the registration of fake documents and other false records.
Under the Registration Act of 1908, once a document was registered, neither the registering officer nor any other authority had the power to cancel it, even for reasons like fraud or impersonation.
If documents were found to be registered based on impersonation or fake records, the Sub-Registrar or the Inspector General of Registration could approach the courts to seek cancellation. This left the power of canceling fraudulent registrations solely with the judiciary.
In an effort to change this, the amendment grants the authority to the head of the registration department to cancel fake registrations. This amendment, introduced by Minister Murthy of the Commercial Taxes and Registration Department in the Tamil Nadu Legislative Assembly, includes new sections 77A and 77B.
According to these new sections, if a registration is deemed to be fake by the registrar, the registrar must issue a notice asking why the registration should not be canceled. This notice must be given to the person who executed the document, all parties involved, and any others who might be affected by the cancellation.
Upon receiving responses to this notice, the registrar will consider the inputs and decide on the cancellation. The cancellation will be recorded in the relevant books and schedules.
If anyone is aggrieved by the cancellation, they can appeal to the head of the registration department within 30 days of the cancellation date. The head of the registration department has the authority to confirm, modify, or revoke the registrar's order.
Further, an appeal against the order of the head of the registration department can be made to the state government within 30 days of the order.
Sections 22A and 22B specify that registering fake documents knowingly will result in three years of imprisonment, a fine, or both. This does not apply to registrations made in good faith.
If a company is involved in registering fake documents, every person responsible for the company at the time of the offense will be considered guilty unless they prove that the offense was committed without their knowledge or that they attempted to prevent the offense.
Directors, managers, secretaries, or other officers will be subject to action and punishment if it is found that the offense occurred with their consent, connivance, or due to their negligence.
This law aims to curb fraudulent registrations despite government efforts to prevent them. False sales deeds cause significant distress to genuine property owners, leading to legal complications.
Additionally, the head of the registration department has issued several circulars to verify documents related to immovable property registrations, such as fraudulent deeds, fake documents, invalid certificates, and revenue records. Despite these precautionary measures, fake registrations continue, prompting affected parties to seek the government's intervention for cancellations.
Previously, registering officers did not have the power to cancel documents even if fraud or impersonation was proven. This led to significant distress for the public. Therefore, to alleviate the suffering of the people, this bill has been introduced and will come into immediate effect as the Registration (Tamil Nadu Second Amendment) Act, 2021.
The registrar now has the authority to reject the registration of fake documents and other false records. This bill was unanimously passed in the Legislative Assembly after being reviewed immediately.