Krishan Arora (Owner) 21 August 2013

Law against illegal practice in property registratration

Respected Lawyers,

I was wondering whether government has amended the property law to break UNREQUIRED and UNNECESSARY spider-network of property dealers.

Seller says, “I have sold the property for Rs. 50 Lakhs” and the buyer says, “I have bought this property for Rs.90 Lakhs.” Where does go the balance Rs. 40 Lakhs. Everyone knows the answer. Government also know this perfectly that this balance amount of Rs.40 Lakhs went to the big bellies of so called property dealers.

So, please guide me if the government has passed any law recently to stop the practice of “Byane Pe Byana”

I shall be very grateful if I can get a weblink or newspaper cutting of news channel video on such a news.

Thanks,

Krishan

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2 Replies

Kolla Gangadhar (Practicing Advocate since 1986) 21 August 2013

Seller sells Property for 90 lacs and Buyer buyes for 90 lacs. Seller and Buyer both agree for that Sale Deed should be Registered for Rs.50 lacs so that Stamp duty, Registration fee can be evaded and Whatever is the Sale Consideration Sale Deed will be Registered for Market value fixed by the Government on that Stamp duty, Registration fee will be paid. So Buyer will be benefited Stamp duty , Registration fee for remaining Rs.40 lacs. Seller will file in his Income Tax returns that sale consideration is 50 lacs and he evades capital gains Tax for Rs.50 lacs so both Seller and Buyer are evading Tax to the Government. There is law that Stamp Duty, Registration fee is payable on sale consideration or Market value of the Property whichever is higher should be mentioned in the Sale Deed to pay Stamp Duty, Registration fee and Seller should mention true Sale consideration.

Krishan Arora (Owner) 21 August 2013

No No Sir, seller got total Rs.50 Lakhs (cash and cheque both) and buyer paid Rs.90 Lakhs.

As I said, one property dealer dealt with seller and did Bayana with him for total of Rs.50 Lakhs. Means, after Bayana, property dealer says that I am the owner of property and he deals with another property dealer, and that property dealer do deals with more property dealers just on bayanas.

Thus, a property worth of 50 Lakhs becomes 90 Lakhs. The question is, is it legal? The same practice is going on everywhere in India.

I hope it makes everything clear to you.

Thanks,

Krishan