Registration may be a must for 11-month leases

New Delhi:In a move aimed at putting property owners and tenants on stronger legal footing in case of disputes, the government may make it compulsory to register even those lease documents dealing with periods of less than one year      An amendment proposed to the Registration Act, 1908, seeks to redefine 'lease' to remove the provision stating that those for a period under one year need not be registered. The amendment would,  however, exempt lease agreements pertaining to an amount which is below the 'floor price'.      Groups like landlords have been exploiting the provision and avoiding registration by using methods like going in for 11-month leases. Conversely, there are cases of land grabbing or squatting where a nonregistered lease puts the owners on a weak wicket.      Sources said making registration compulsory for every lease could, however, hinder business because of sheer volume and the government hasthought of a 'floor price' to make it binding. States are likely to be given the freedom to decide the floor price.      The move is part of the changes thatthe Union rural development ministry has proposed to the Registration Act and are being vetted by law ministry. The government may also make it mandatory to register powers of attorney. The transfer of property without registration causes loss to exchequer and is also a big source of disputes.      In another change, the registered documents relating to moveable and immoveable property would no longer be secrets in the registrar's office. The changed law may throw the Book 4 open for general viewing. Book 4, or the Miscellaneous Register, is a compendium of all registered documents of certain value which is not allowed to be accessed by the general public. Sources said it would enable citizens to verify facts like ownership details of certain properties.