Properties under attachment cannot be registered if the documents transferring such properties by sale, gift, lease, exchange or permanent alienation relate to property that is either permanently or provisionally attached by a competent authority under any central or state law, or by a court or tribunal. Finally, there is a catch-all provision prohibiting registration of any other category of documents specified by the state government through rules made under the act.

By means of this measure, the government of Maharashtra is aiming to promote transparency, ensure legal compliance and improve administrative efficiency in the registration of immovable property.

Section 18A(2) empowers the state government to frame rules specifying additional categories of documents that must be refused registration. These rules have to be laid before both houses of the state legislature as soon as possible after they have been made. This promotes and ensures transparency and enables reviews to be made of the exercise of this authority.

Sections 21 and 22 of the act have also been amended. Although the powers in section 21 are left vague, they allow the state government to make rules requiring adequate descriptions of immovable property, supported by appropriate documentation. The amendments are expected to strengthen documentation standards and improve the transparency of registration records. To prevent the capricious and prejudicial use of the power to make rules, they are again required to be placed before both houses of the state legislature as soon as possible after they have been made.

The legal and administrative ramifications of the amendment are significant for legal practitioners, real estate professionals and transactions, and public governance. Key effects include reinforcing legal compliance. By refusing to register documents that violate legal provisions or court orders, the amendment ensures that only valid transactions are recorded in land records maintained by the state government. Its provisions serve as a safeguard against the unauthorised or fraudulent transfer of government-owned properties, thus ensuring such properties remain in the public domain.

By preventing fraudulent dealings, properties under attachment are protected from illegal transfers, thereby reducing the risk of criminal activity and third-party disputes. Registration authorities are empowered because sub-registrars are now permitted to identify and reject invalid or ineligible documents. This ensures scrutiny during the registration process.

The delegated rule-making power facilitates responsive regulation by enabling the state government to respond promptly to emerging patterns of misuse. It can specify new categories of refused documents through administrative rules.

The amendment is a timely and decisive reform, enhancing the integrity of property registration in Maharashtra. By specifically identifying ineligible documents and reinforcing the powers of registration authorities, the amendment promotes transparency, protects government properties and strengthens legal and administrative accountability. Its implementation is a significant step towards a more secure, compliant and trustworthy property registration framework in Maharashtra.

This article was originally published in India Business Law Journal on 12 June 2025 Co-written by: Ashoo Gupta, Partner. Click here for original article

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