Government is considering Aadhaar-based authentication for property deals, in another attempt to minimise the scope for benami transactions and crack down on unaccounted income.
Besides minimising the scope of benami transactions, the new system will also ensure foolproof property titles for buyers.
The plan is to make Aadhaar-based authentication compulsory at the time of real estate document registration, according to a report in The Indian Express.
Such authentication will be mandatory for documents such as agreement of sale and power of attorney for electronic registration of properties that the government is planning to roll out.
Accordingly, Sections 32 and 32A of the Registration Act, 1908 will be amended by the government to give legal backing to Aadhaar-based authentication of documents.
Besides minimising the scope of benami transactions, the new system is also expected to ensure foolproof property titles for the buyers.
The Department of Land Resources of the rural development ministry has already advised state governments and union territory administrations to notify rules mandating ''consent-based Aadhaar authentication'' while registering property documents.
''Every person presenting a document at the property registration office for registration, shall, whether executing or claiming under the same, undergo Aadhaar authentication.''
The Aadhaar law allows the Central Identities Data Repository to offer authentication services. As per Section 8 of The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, ''The Authority shall perform authentication of the Aadhaar number of an Aadhaar number holder submitted by any requesting entity, in relation to his biometric information or demographic information, subject to such conditions and on payment of such fees and in such manner as may be specified by regulations,'' the report added.