We have been lamenting quite a bit about how Indian laws do not protect property rights. The reality has been worse than that. The Indian government does not even record property ownership properly. Unclear land titles have been the bane of India’s property market.
Now it turns out that a small step towards recording land titles is being taken.
Rajasthan, Andhra Pradesh and Karnataka are set to directly or indirectly guarantee property titles in urban areas in an effort to make property transactions easier and reduce or prevent most such deals from landing up before the courts.The move will remove uncertainty surrounding more than half the land deals that happen in India because most property owners do not have a clear title to their holding. It will make it easier for foreign real estate funds to invest in properties here. And it will also provide a boost to the real estate sector and industry in general because unclear titles present a hurdle to efforts to acquire land. According to Anil Baijal, the country’s former urban development secretary, six out of every 10 land transactions in the country end up before the courts.(link via Sruthijith)