August 2, 2017
The Indian government is planning to make Aadhaar-based authentication mandatory for all real estate deals. This will help in curbing the use of black money in real estate deals and will limit the number of benami properties in the country. Aadhaar-based authentication will be required while registering documents such as power of attorney, agreement for sale etc. according to the Indian Express.
The government also plans to enable electronic registration of properties for which Aadhaar-based authentication will be required. Sections 32 and 32A of the Registration Act, 1908 will be amended for making this a legal requirement.
Earlier, state governments received notifications from the Ministry of Rural Development advising them to inform people about mandating “consent-based Aadhaar authentication” at the time of registration of documents. These notifications were sent through the department of land resources.
The Registration Act, 1908 will soon be amended by the government for providing provide legal backing to Aadhaar-enabled authentication of documents. The government will send a draft of the amended bill to the Union Cabinet and then to the Parliament for approval.
After coming to power in 2014, PM Modi-led central government has taken many initiatives to curb the menace of black money in the country, especially in the real estate sector. In 2016, the government introduced the Benami Transactions (Prohibition) Amended Act, 2016. The amended law empowers the specified authorities to provisionally attach benami properties which can eventually be confiscated. This act came into effect from 1st November, 2016.
The government also announced the demonetisation of all Rs.500 and Rs.1,000 banknotes on 8 November, 2016 to curtail the circulation of black money in the country. Experts believe that demonetisation affected the real estate sector as cash used to be paid for a large percentage of all real estate transactions.