In a bid to tackle property fraud, the Karnataka government has announced plans to implement PAN and passport verification during property registration. The state’s Revenue Minister, Krishna Byre Gowda, revealed the initiative during the Assembly discussion 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 ensure the authenticity of documents used in property transactions. This step comes in response to the rising cases of fake identification being used to register properties illegally.
Fake PAN Cards Used in Property Deals: Minister’s Warning
Minister Krishna Byre Gowda raised concerns over the increasing use of fake PAN cards in property transactions. He highlighted that fraudsters were exploiting loopholes by using forged PAN details to register properties under false identities.
“We have identified multiple cases where fake PAN cards were being used during property registration. To prevent such fraud, we will collaborate with the IT Department and MEA to authenticate PAN and passport details in real time,” the minister stated.
Role of IT Department and MEA in Verification Process
The Karnataka government’s anti-fraud measure will involve direct collaboration with the Income Tax Department and the MEA:
- Income Tax Department’s Role: It will verify the authenticity of PAN details presented during property registration. This will prevent the use of counterfeit or invalid PAN cards.
- Ministry of External Affairs’ Role: The MEA will validate passport details, particularly for NRIs and foreign nationals involved in property transactions. This will prevent the misuse of fake or expired passports.
How the PAN and Passport Authentication Will Work
The verification process will be conducted in real time, ensuring that all PAN and passport details are cross-checked with government databases before the property registration is finalized.
Key Features of the Verification System:
- Real-Time Authentication: Property registration offices will have access to the PAN and passport databases, enabling them to verify document validity instantly.
- Enhanced Security: The measure will significantly reduce impersonation and forgery in property transactions.
- Digital Integration: The process will be digitally integrated with the property registration system, streamlining the verification process.
Impact on Property Transactions and Buyers in Karnataka
The PAN and passport verification system is expected to transform the property registration process in Karnataka by making it more secure and transparent.
Key Benefits:
- Reduced Fraud: The authentication process will minimize the chances of fake documentation being used, making property transactions safer.
- Increased Trust: Buyers and sellers will gain confidence in the registration process, knowing that their documents are thoroughly verified.
- Deterrent Effect: Fraudsters will be discouraged from attempting property scams due to the strict verification measures.
Potential Challenges:
- Implementation Hurdles: Integrating the verification system with government databases may take time and resources.
- Impact on NRI Transactions: While the passport verification measure will reduce fraud, it could also introduce minor delays for genuine NRI property buyers.
The Karnataka government’s decision to verify PAN and passport details during property registration marks a significant step toward preventing fraud. With the support of the Income Tax Department and the MEA, this initiative aims to create a more secure and transparent property market. The move is expected to safeguard genuine buyers while deterring fraudulent practices, ultimately boosting confidence in the real estate sector.
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