Two-day Capacity Building Workshop on “The Fundamental Principles of Property Titling”

19-20 July, 2010

Draft Land Titling Bill, 2010 - India

byRita SinhaSecretary

Department of Land Resources Ministry of Rural Development

Government of India19-20th July, 2010

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Introduction

• Present land titling system in India provides for registration of deeds and documents and “presumptive” property titles.

• On 21st August, 2008, the Union Cabinet took a historical decision to usher in the system of conclusive titling based on the Torrens system.

• The Union Cabinet also directed the DoLR to draft a Model Titling Law.

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Main features of the Bill

The Bill is proposed to be enforced in a modular way. Separate areas may be notified as and when they are ready for titling.

To begin with titling will be voluntary and after issue of notification, interested persons will be invited to apply for indefeasible titles.

Provisional entries to attain conclusiveness after 3 years.

After a period of time (the Bill proposes 5 years) the provisions of the Bill will be made compulsory. This will prevent clandestine reversion to deeds and documents system.

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Compulsory intimations to the LTA – by all agencies that affect property titles (Chapter VIII).

Non-compliance of requirements of this Act will render the transfer, grant or creation of title or right or interest void ab initio.

The LTA will charge reasonable fees for all services rendered.

Property with no rightful titleholder to vest in the Government.

Penalties for failure to furnish information, willful concealment of information or deliberate furnishing of false information, willful violation of the Act.

Main features of the Bill contd..

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Constitution of a Land Titling Authority

The Land Titling Authority (LTA) is proposed to be created with the powers of a civil court and will perform the following functions:

(a) maintain the Register of Titles, Register of Disputes, Register of Charges and Covenants, Register of Property Valuation and Index of Maps

(b) assign unique property identification numbers to each immovable property in the notified area.

(c) undertake property valuation and provide this information to the citizens

(d) create and operate the Title Guarantee Fund(e) award conclusive and indefeasible property titles(f) indemnify the entries in the Register of Titles

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

The LTA to have four divisions:A Central Title Registry for the State/UT – the Registry will maintain 3 Registers, viz., the Register of Titles, the Register of Disputes and the Register of Charges and Covenants. It will notify areas to be taken up for titling and process applications within 30 working days and place them before the Authority. Survey, Settlement and Land Information System – will prepare boundaries of each immovable property within the notified area and give to each a unique property identification number, maintain an Index of Maps and indicative maps and maintain an LIS.

Organizational Structure proposed for the LTA

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Organizational Structure proposed for the LTA…contd.

Property Valuation – will maintain a Register of Property Valuation with property valuation details for each immovable property in the notified area.

Legal Services & Title Guarantee – will maintain and operate the Title Guarantee Fund and put in place the system for indemnification of the correctness of titles. The Authority shall guarantee title of ownership of a property with unique property identification number as recorded in the Register of Titles but not the boundaries and areas of the property

The LTA may set up other administrative divisions as per its requirement. Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Creation of the Land Titling Tribunal

The Land Titling Tribunal is proposed to be vested with the powers of a civil court but would regulate its own procedure so that it can decide cases faster than a civil court. The jurisdiction of the civil courts will be barred. (i) Main functions of the Tribunal: (a) to adjudicate on claims preferred for payment of compensation from the Title Guarantee Fund/private parties operating the Fund (b) to hear appeals against the orders of the Land Titling Authority regarding provisional titles.(ii) Appeals against decisions of the Tribunal shall lie with the High Court. Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Amendments required in the following Acts

The Indian Stamp Act, 1899 The Registration Act, 1908 The Limitation Act, 1963 The Land Acquisition Act, 1894 The Transfer of Property Act, 1882 State Laws

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India

Thank you

Department of Land Resources, Govt. of IndiaDepartment of Land Resources, Govt. of India