HYDERABAD: In a troubling development, builders and developers by colluding with sub-registrars have allegedly managed to bypass regulations and register plots in unapproved layouts, leading to a major investigation by the registration and stamps (R&S) department.
One such fraud came to light when 99 plots in unapproved layouts were registered in a single day in Wyra municipality in Khammam district, where a real estate boom has led to creation of hundreds of unauthorised layouts. In fact, a ban was imposed four years ago on the registration of plots in unauthorised layouts in Telangana.
The ban, which came into force on Aug 26, 2020, prohibits the registration of new plots in layouts that lack approval. Under the layout regularisation scheme (LRS), these plots can be registered only after obtaining a formal approval. However, some developers and sub-registrars have found ways to circumvent this restriction, sources said.
Notably, Yadagirigutta’s sub-registrar Gopi was suspended recently for allegedly facilitating the registration of 150 open plots in unapproved layouts. Similar incidents have surfaced in districts like Mancherial, Warangal, Siddipet, and Sangareddy, a source said.
Sources reveal that the registration of plots in unauthorised layouts has become a financial boon for some sub-registrar offices. “Developers, eager to complete sales, have turned to these officials to register plots that have already been sold to buyers, often charging a fee of Rs 25,000 to Rs 40,000 per plot. In some cases, registrations have been conducted with fake LRS approvals, further compounding the problem,” Telangana Realtors Association president Naragoni Praveen Kumar told TOI.
He estimated that around 60% of plots in unauthorised layouts, which had been approved by local gram panchayats, were fraudulently registered.
The issue stems from lack of clear definitions and guidelines in the relevant legislation. According to official sources, there is no clear definition of a ‘new plot’ or ‘sub-division of plots’ under the municipal or panchayat raj Acts. Additionally, the 2020 govt orders failed to specify a cutoff date for the registration of plots in unauthorised layouts, leading to confusion and legal loopholes.
As a result, the R&S department has recently written to the municipal and panchayat raj departments requesting the lifting of the ban on registrations, arguing that the absence of clear-cut rules has allowed fraudsters to exploit the system.
The govt has also been urged to permit the registration of plots in layouts where over 50% of the plots have already been sold. This move, according to govt sources, would help address the backlog and curb irregularities. The situation remains critical, as illegal registrations continue to undermine the integrity of the property market, leaving both buyers and sellers vulnerable to fraud and legal disputes.
While the govt has taken steps to address the issue, realtors say more stringent measures are necessary to curb the growing menace of unauthorised registrations and restore trust in the real estate sector.
Source Homevior.in
