Karnataka’s Bold Move to Curb Property Fraud
In a major step toward enhancing the transparency of property transactions, the Karnataka government has decided to introduce PAN and passport verification during property registration. The initiative aims to eliminate the use of fake documents and prevent impersonation fraud in real estate deals.
Revenue Minister Krishna Byre Gowda announced the plan during the Assembly debate on the Karnataka Stamp (Amendment) Bill 2025. The government has sought the assistance of the Income Tax Department and the Ministry of External Affairs (MEA) to implement the verification process.
Revenue Minister Exposes Widespread Use of Fake PAN Cards
During the Assembly session, Revenue Minister Krishna Byre Gowda highlighted the alarming rise in the use of fake PAN cards for property registrations. He revealed that fraudsters have been exploiting loopholes in the system by submitting counterfeit documents to illegally transfer property ownership.
“To prevent such fraudulent practices, we will collaborate with the Income Tax Department and the Ministry of External Affairs. This will enable us to verify the authenticity of PAN cards and passports in real-time,” the minister stated.
IT Department and MEA to Aid in Real-Time Verification
The Karnataka government will integrate its property registration system with the databases of the Income Tax Department and the MEA. This will allow for instant validation of PAN and passport details during the registration process.
- Income Tax Department’s Role: The IT Department will verify PAN card details, ensuring that only genuine and valid PANs are used during property registrations.
- MEA’s Role: The Ministry of External Affairs will authenticate passport details, particularly for Non-Resident Indians (NRIs), preventing identity fraud in cross-border property transactions.
How the Document Authentication Process Will Work
The government’s new verification system will streamline property registrations by ensuring that only valid and authentic documents are accepted.
Key Steps in the Verification Process:
- Real-Time Verification: During property registration, officials will cross-check PAN and passport details against the respective government databases.
- Instant Alerts for Invalid Documents: The system will flag any discrepancies, such as fake, expired, or invalid documents, preventing fraudulent transactions.
- Digital Integration: The authentication process will be conducted digitally, making it efficient and reducing manual intervention.
Impact on Real Estate Sector and Property Buyers in Karnataka
The introduction of PAN and passport verification is expected to bring greater security and transparency to Karnataka’s real estate sector.
Benefits for Property Buyers:
- Enhanced Security: Genuine buyers will be protected from falling victim to fraudulent transactions.
- Increased Transparency: The verification process will make property deals more credible and reliable.
- Protection Against Impersonation: The move will prevent property buyers from being deceived by fake document submissions.
Impact on the Real Estate Sector:
- Reduced Property Frauds: The initiative will significantly reduce cases of property scams involving fake PAN and passport details.
- Improved Investor Confidence: Enhanced transparency will attract more investors, boosting the real estate sector’s credibility.
- NRI Property Transactions: With passport authentication in place, NRIs will have greater security and assurance during property purchases.
Challenges in Implementing the New Verification System
While the reform is expected to strengthen property registration security, it may face initial challenges:
- System Integration Delays: Establishing seamless connectivity with the IT Department and MEA databases may take time, leading to temporary delays.
- Processing Time: Real-time verification could slightly extend the registration process, but the added security will be worth the wait.
- Public Awareness: Ensuring that buyers, sellers, and real estate agents are aware of the new verification process will be crucial for smooth implementation.
The Karnataka government’s decision to enforce PAN and passport verification in property registration is a proactive step toward curbing real estate fraud. By collaborating with the Income Tax Department and the MEA, the government aims to make property transactions more transparent and secure. This move is expected to enhance buyer confidence, reduce fraudulent activities, and strengthen the integrity of Karnataka’s real estate sector.
