Karnataka Proposes Key Amendments to Registration Rules: Clarity on Powers of Attorney and Proof of Life

Introduction

The Government of Karnataka has issued a draft notification proposing amendments to the Karnataka Registration Rules, 1965, aimed at streamlining registration practices and addressing practical challenges surrounding Powers of Attorney (PoA). These proposed changes, issued under the Registration Act, 1908, reflect a growing emphasis on authenticity, fraud prevention, and administrative efficiency in property transactions.

The draft rules are open for objections and suggestions for a period of 15 days from publication in the Official Gazette.

Registration (Amendment) Rules

1. Registration of Powers of Attorney for Property Transfers

A significant proposed insertion to Rule 67 clarifies the registration requirements for Powers of Attorney that authorize transfer of immovable property (with or without consideration):

• Where the principal resides in India: Such PoAs must be registered before the jurisdictional Sub-Registrar.
• Where the principal resides outside India: If the PoA is executed before and authenticated by a Notary Public, Court Judge, Magistrate, Indian Consul or Vice-Consul, or a representative of the Central Government, separate registration in Karnataka is not necessary.

Practical impact: This provides welcome clarity for NRIs and cross-border transactions, reducing duplication where proper overseas authentication already exists.

2. Mandatory Proof that the Principal is Alive

The proposed amendment to Rule 171 introduces an important safeguard: a document presented through a PoA may be refused registration if the agent fails to prove that the PoA executant (the principal) is alive.

Additionally, the original PoA or its certified copy (for multiple transactions) must be annexed to the document presented for registration.

Accepted “Proof of Life”

For principals residing in India:

• Life Certificate from specified authorities (e.g., Magistrate, Gazetted Officer, Tahsildar, Police Officer not below Sub-Inspector rank, municipal authorities, etc.)  valid if produced within 7 days of issue; or
• Digital Life Certificate through UIDAI Aadhaar-based face authentication, valid if produced within 3 days of issue.

For principals residing outside India:

• Life Certificate issued by a Notary Public, Court Judge, Magistrate, Indian Consul/Vice-Consul, or Central Government representative, valid if produced within 15 days of issue.

Practical impact: This is a strong anti-fraud measure. It seeks to curb misuse of stale or unauthorized PoAs, particularly in high-value real estate transactions. However, the short validity windows for life certificates may require careful transaction planning and tighter coordination among parties.

3. Broader Significance

These amendments reflect three policy priorities:

1. Fraud Prevention: Requiring recent proof that a principal is alive reduces the risk of fraudulent conveyances.
2. Digital Integration:Recognition of Aadhaar-based digital life certificates signals continued digitization of land and registration processes.
3. Facilitation of NRI Transactions: Exempting certain overseas-executed PoAs from local registration reduces friction in cross-border dealings.

4. Key Takeaways for Stakeholders

• Property owners: Ensure PoAs are updated and properly authenticated.
• Developers and purchasers: Build proof-of-life requirements into transaction timelines.
• NRIs: Confirm overseas PoAs meet authentication standards.
• Legal practitioners: Advise clients on documentation timing to avoid registration refusals.

Conclusion

If implemented, these amendments will materially affect how PoA-based transactions are structured in Karnataka. While they enhance safeguards and legal certainty, they also introduce new compliance steps that require proactive planning.

Stakeholders may consider submitting feedback during the consultation window and preparing internal processes to align with the proposed framework.

Reference: https://ksandk.com/wp-content/uploads/Registration-Amendment-Rules.pdf