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ID.04   ---   Enacting   Torrence   System

Section   1   :   Preamble
  This Act is to create a less nexusprone procedure to enact a National ID card system.

Section   2   : Format of the act
2.1 Many of the clauses of this law are procedures or instructions, which may be an order or a request. The clause has list of persons for whom that procedure/instruction is meant for.

Section   3   : Appointments of officers
3.1 [Person responsible for this procedure/directive: CM ; Purpose: Appointment of senior officers] The CM will appoint a Registrar and a LRO (Land Record Officer) in every district in-charge of maintaining ownership records of plots and flats.
3.2 The LRO can use existing staff in District Collector's office (after permission from Collector), or recrcuit new staff using open written competitive exam. The citizens may expel a staff member after a Jury Trial as described in "Jury System over Municipal Staff" Act.

Section   4   : Procedure for citizens to replace LRO
4.1 [Person responsible for this procedure/directive: Registrar; Purpose: allowing a citizen to be candidate for LRO] Any citizen of India who wants citizensí Approval for the position of LRO for a district can register himself with the Registrar. The Registrar will charge a deposit of Rs 5000 and a monthly fee Rs 500 per month. There will be no fee after over 1% of ALL citizens of district have approved the candidate.
4.2 [Person responsible for this procedure/directive: Registrar, Registrarís clerks] A citizen residing in the district can present his ID and specify the serial numbers of at most 5 candidates he Approves for the position of LRO.
4.3 [Person responsible for this procedure/directive: Registrar] The clerk may charge a fee of Rs 2 to Rs 5 to the citizen.
4.4 [Person responsible for this procedure/directive: Registrar] The citizen can withdraw his Approvals any day. There will be no fee from withdrawing the Approvals.
4.5 [Person responsible for this procedure/directive: CM ; Purpose: Replacement of LRO] If any candidate for the seat of LRO is approved by highest number of citizen-voters and over 25% of ALL citizen-voters of India, the CM will appoint him as new LRO within 2 days. If any candidate is approved by over 25% of ALL citizen-voters and his approval is 1% more than existing LRO, the CM will appoint him as new LRO within 2 days.
4.6 [Person responsible for this procedure/directive: Registrar ; ] The word "citizen" in the context of Approval, means citizen above 18 and registered voter resident in the city

Section   5   : Creating plot/flats' owners' database
5.1 Within 14 days after passing of this law, the LRO will issue a public notice asking EVERY person, company, HUF, trust etc in the district who owns a plot/flat in the district or he has given loans against a plot/flat or holds Power of Attorney on a plot/flat or has any claim on any plot/flat, to register himself at a local Talati's office within 6 months.
5.2 If the property owner has an ID given by Income Tax dept or has a National ID given by Central Govt, then the LRO will use that ID. Otherwise, LRO will issue a 10 digit ID for the property owner.
5.3 If a person has National ID, he MUST provide that ID and use NO other ID in LRO's office. If he does not have National ID, and has Income Tax ID, he must provide Income Tax ID and use no other ID. If he does not have National ID or Income Tax ID, he may ask LRO to provide him an ID. If LRO finds that a person has obtained two IDs from LRO, he will ask Jurors to decide the punishment which may be upto 3 years of prison. If and when the person obtains a National ID from Central Govt and/or ID from Income Tax Dept, he MUST inform LRO about those IDs within 3 months. If LRO finds that a person has Income Tax ID and/or National ID and has NOT provided that ID to LRO, he MUST ask Jurors to decide the punishment which may be upto 2 years of prison.
5.4 In case the owner is a company, he will take company's as well as directors' IDs.
5.5 The LRO will put some of the information, like ID, name, address etc on the internet.

Section   6   : Creating a database of plots/flats and their sizes and locations
6.1 The LRO will create a Land Ownership Register for each town/ward in the district. In the register, LRO will create a page i.e. record for each plot and each property owner. The LRO will give a 10 digit serial number to every plot.
6.2 If a plot has multiple sub-plots or several independent flats, the LRO will mark the plot as COMPLEX, and create a seperate record for each subplot or flat. The LRO will list the references of those sub-plots and flats on the record of that complex plot.
6.3 If a plot is NOT divided into sub-plots, and has ONLY one flat on it, then LRO will mark the plot/flat as ATOMIC.
6.4 if owners of a plot wish to make sub-plots of their plot, they MUST first register each sub-plots with LRO. The LRO will ensure that there is NO claim against the plot, and ALL the owners have agreed with the splitting scheme. The LRO will then mark the plot as "COMPLEX" and "dissolved after split", and create records for each sub-plots, and make the owners of the plot as owners of sub-plot in the SAME proportion. The LRO can charge a fee of upto 0.5% of land value as charge for sub-plotting.
6.5 If the owners of several adjacent plots want to merge their plots into one bigger plot, the LRO will do so ONLY ALL smaller plots are owned by same owners in SAME proportion, and there is NO claim against ANY of the smaller plots. Then LRO will mark the records of smaller page as "dissolved after merge", create an entry for bigger plot, and put the plot number of bigger plot in the record of each smaller plots.
6.6 If a plot has several flats in it, the LRO will divide the plot into same number of "unbordered" sub-plots, as there are flats. He will keep area of unbordered sub-plots
  1. in proportion to in proportion to flats' carpet area as per the original construction plan OR
  2. in proportion to number of shares each flat owner has in the co-operative society or non-trading corporation which owns the plot OR
  3. as per agreement amongst flat owners.
The LRO will ensure that sum of unbordered sub-plots' areas is same plot's area. The LRO will also give a serial number to each unbordered sub-plot and will associate each unbordered sub-plot exactly with one flat.
6.8 The LRO will issue two numbers to each plot/flat : a serial number and one hirachial number. The hierachial number of land will be as will be as towncode.plot#.sub_plot#.____ , and that of flats will as towncode.plot#.sub_plot#.____.sub_sub_plot#.unbordered_plot#.flat#. The serial number will be a 10 digit number issued for that plot/flat.
6.9 Later LRO will also issue two "Geographical Co-ordinates" for each plot. The two numbers will be created as follows :
  1. The LRO will decide a reference point for each town/ward, which can be the geographical center of the town/ward, called as the Town Reference Point.
  2. For each plot, the LRO's staff will decide two Plot Reference Points, one at the centre of the plot and other at northmost point on the border of the plot.
  3. The LRO's staff will measure the distances between Plot Reference Points and the Town Reference Point along East-West (X) direction and North-South (Y) direction.
  4. The two pairs of distances will be the two Geographical Co-ordinates of the plot.

Section   7   : Creating first (tentative) plot/flat ownership database
7.1 Using existing land tax records and existing municipality property tax records, the LRO will create a TENTATIVE ownership record, which he MUST NOT assume as correct, but take ONLY as a stating point.
7.2 The LRO will keep the entire register, with serial numbers of each plot/flat and the first ownership data, on the internet. The LRO will also publish a CD of the entire register every month.
7.3 The LRO will issue notices to the owners of the property, and all the owners who had had held that property in past 10 years or past 3 transfers, which ever is more, and every person/company which has registered a partial or total claim or "weights" on that flat/plot, or the plot of which that flat/plot is part of, to re-register their claims.
7.4 The LRO will put the claims on the net within 7 days after he recieves the information about the claim, along with plot ID and persons' ID who is putting a claim.
7.5 If a complex plot has a claim against it, the LRO will copy that claim on ALL the complex/atomic plots in that complex property. He will copy the whole claim, as well as put an amount which is divided pro-rate land area.
Example : say a plot of area 1000 sqm has a claim of Rs 200,000/- against it and there are 4 sub-plots of 100 sqm, 200 sqm, 300sq and 400sqm each. Then LRO will freeze ALL sub-plots, and put a note of Rs 100,000 of claim on all sub-plots and a weight of Rs 20000, Rs 40000, Rs 60000 and Rs 80000 respectively against the sub-plots.
7.6 12 months after issuing notice to submit ownership/claims, the LRO will publish a final list of ownership/claims, and publish an intrim copy of the register, and also publish it on the net and CDs.
7.7 If a property has only one sole owner, and there is no claim against it or against ALL the complex properties in which it is enclosed, LRO will mark it as clear, and will give ownership (title) certificate, AFTER the sole-owner pays 2% of market value as fee.
7.8 If a property has two or more owners, and there is no claim against it or against ALL the complex properties in which it is enclosed, then if the ALL the owners agree on the %-ownership of the property by appearing in person before LRO or his deputy, LRO will mark it as clear, and will give ownership (title) certificate, AFTER the EACH owners pays 2% of the market value of the property in the ratio of their % ownerships as fee. The LRO will issue one certificate and the person who is approved by highest % of owners will get the custody of the certificate. And he will give a "co-owners'" copy to all the owners.
7.9 If a property has two or more owners, and they cannot decide the %-ownership amongst themselves, then the LRO will ask each party to declare the %-ownership he has in the plot. If the %-ownership adds upto 100 (or less), there is no dispute. If the %-ownership is more than 100, then LRO will call a Jury to decide the %-ownership of each party. The LRO will impose a fine on each party depending on difference betwen his claim and what Jury awarded, if the person's claim was higher.

Example : Say there are 5 claimaints on a property, A, B, C, D and E. they declare a claim of 20%, 20%, 30%, 30% and 40% respectively, totalling 140%. Say Jury decides ownership as 20%, 30%, 30%, 20% and 20% In such case, A, B and C got rewards more or equal to their claims. So there is NO fine on them. But D and E had declared a share more than what an impartial Jury decided. So D and E will have to pay a fine in proportion to their over-claim, as decided by a second Jury.
7.10 As a guideline, the second Jury can use following formula to decide the fine as 10% of market value * (ownership declared - ownership given)/100. So if an owner had asked for say 35% of the plot/flat, and he was awarded only 30% on a plot of 1000sqm with value as Rs 2000/sqm, then fine will be 10% * (10000 * 2000) * (40 - 35)/100 = 10/100 * (1000 * 2000) * 5/100 = Rs 10000. The owners must pay the fines within 1 year, or LRO will confiscate the their share in the land. Only after all the fines have been collected, the LRO will issue the ownership certificates.
7.11 All the ownership certificates will have an expiry period of 2 years after the date of issue. At the end of expiry, if the property is NOT sold, the owners must return the certificate to LRO and obtain new certificates.

Section   8   : Registering the transfer --- "deal is void unless signed before LRO"
8.1 A sale, or loan or rental for a period longer than 2 years will be void unless it was signed by owners' before LRO, after LRO certifying that signer is the full owner and is lawfully capable of signing the contract.
8.2 If a plot/flat owner is the sole owner and he wants to sell (or mortgage or rent for over 24 months) the plot/flat to someone, he may do it by appearing in person or by sending an agent with power of attorney. The agent must be a registered solictor in the district, or a child/parent/sibbling/spouse of the seller and no-one else.
8.3 If one owner of the property owners want to sell his stake to an existing owner, the persmission of other owners will NOT be required. The LRO can register the deal, and issue a new certificate. The LRO will summon the person who hold the certificate and co-owners' copies, take the old certificate and copies back, and provide them with the new certificate and copies.
8.4 If a land/flat owner is a co-owner, and he wants to sell his portion of his land/flat to someone other than an existing co-owner, the transaction will require permission of ALL the existing co-owners. They must appear in person, or via an agent.
8.5 The LRO will allow the owners to mark the property, at the time of purchase or later, as following
  1. To be sold only when owner appears in person : in this case, NO agent can appear to sell the property. To remove this "lock", the person must appear in-person.
  2. To be sold ONLY by following agents : in this case, the owner will have to personally appear, and submit the name and other information of the agent who may operate on his behalf. The agent MUST be a registered solicitor in the District/State or child, parent, sibbling or spouse of the owner. The owner can take-off agents name anyday i.e. the power will ALWAYS be inherently revocable.
  3. Payments must be by account payee checks : In this case, the seller MUST make payments by payee-AC cheques or else the LRO will NOT approve the deal.
  4. Payments must be made by account payee checks in owner's bank account# XXXX at such and such bank : In this case, the seller MUST make payments by payee-AC cheques to the specified account, or else the LRO will NOT approve the deal.
  5. Payments must be by account payee checks in bank account where tax-ID is XXXXX : In this case, the seller MUST make payments by payee-AC cheques to a bank account where account holder's tax-ID is registered, and it is same as the one stated in land records, or else the LRO will NOT approve the deal.
  6. The payments must be more than at least 75% of the market price : In such case, if the sale is made by agent, then the payment amount must be over 75% of market value or else LRO will NOT approve the deal.
The owner may or may not use any, all or none of the above markings. If the owner has made a marking, he must appear in person to remove it.
8.6 If a loan is to be taken against a plot/flat, the lender and borrowers (owners) must register the loan to LRO BEFORE the loan money is taken, or else the loan will be considered void.
8.7 If the plot is complex, i.e. already divided into independent sub-plots or a plot on which independent flats have been made, LRO will NOT allow the loan against such plots, and such loan will not amount to any claims on the plot or its sub-plots.
8.8 The LRO will allow ONLY one lender to give loan against a plot/flat. If the loan has been paid, the lender MUST release the claims within 3 months, or else LRO can summon a Jury to issue a fine on the lender. The lender must re-register the pending amount on the plot/flat every year. Or else, LRO can initiate a search, summon the lender and also summon a Jury to decide a fine on the lender.
8.9 In case the lender cannot be tracked for more than 2 years, the LRO can assume that the loan has been repaid in full, and remove the claims
8.10 If there is a pending loan on the plot/flat, the LRO will transfer the plot/land ONLY if the lenders or their agent withdraws the loan at the time of the sale.
8.11 The LRO may transfer a loan given by one person in to the name of another person.
14.1 Posting of transactions : The LRO will post ALL plot/flat transfers made on a day on internet within 3 days, and NOT delete them for 30 years. The posting will include sellers' IDs, sellers' names, plot/flat's numbers, sale date etc. The list should be indexed and searchable by seller's IDs and plot's numbers.

Section   9   : Transfer tax and property tax
9.1 Transfer tax will be 0.5% of market value of land/flat. There will be no transfer tax is buyer is an RBI approved bank, and is buying house on a "no-use" basis.
9.2 On all plots/flats, which are bought/sold or transferred by any means AFTER enacting this law, the owners will have to pay a property tax i.e. wealth tax of 1% per year of market value. There will NO such tax on plots/flats which were transferred BEFORE enacting this law.
9.3 The transfer tax will be 20% higher if there are more than one buyers. And transfer tax and wealth tax will be also 20% higher if there are more than one owners of a property.

Section   10   : Specifying the nominees
10.1 Any buyer can specify 0, 1 or more nominees at the time of buying the property. He will need to provide names and relations with the nominees and other details at the time of buying the property. Within 30 days, he MUST also provide photographs, addresses and tax-ID# of the nominees.
10.2 The buyer may also provide %-share of each nominees.
10.3 If there is NO nominees, the transfer tax will be twice. And if there are over 5 nominees, then the transfer tax will be 50% higher. Same way, if there are no nominees, the property tax will be 20% higher, and if there are over 5 nominees, then property tax will be 20% higher.
10.4 If an owner dies, and there is ONLY one nominee, and he is alive, then the property will go to him after he pays the tranfer tax. If the nominee is person other than child, sibbling, parent or spouse, the LRO must put the tranfer request on notice for 90 days before transfer.
10.5 If an owner dies, and there is ONLY one nominee, and he is dead, the the property will go to the next kin of the owner, NOT the next of the kin of the nominee.
10.6 If an owner dies, and there are multiple nominees, and all of them are alive, the the property will go them in the %-share he specified. The LRO will issue the new certificate ONLY after each party pays transfer tax in proportion to their share on the property. The transfer tax will be 20% higher if there are more than 5 nominees.
10.7 If an owner dies, and there are more than one nominees, and one/more of them is alive, but one or or more are dead, then ownership will go to the listed nominees ONLY, NOT relatives of the nominees, in the proportion of of their shares.
10.8 In case there are no nominees, or nominees have expired, the LRO will post the information in bulletins, conduct a search for hiers, and the heir will get property. In such cases, the transfer tax will be twice. In case of disputes, the Jurors will decide the %-shares of the heirs.
10.9 In case, a person is a co-owner and NOT a sole-owner of the land/flat, he too can specify the nominees in the same way.

Section   11   : Unpaid taxes on land/flat
11.1 If the owners request an ownership certificate before paying the taxes due, the LRO can put a charge of 10%, and issue the certificates as "ownership clear, taxes unpaid". The register will also show the amount of taxes unpaid. The certificate will be valid ONLY for 3 months, and will need to be re-issued after that.
11.2 In such case, the owner can sell the land, but the buyer must submit a written note to LRO that he is aware about unpaid taxes, with the amount of taxes unpaid, before he buys the property, and must pay the taxes at the time of buying the property and registering the transfer.
Section   12   : Keeping tracks of deaths
12.1 Each hospital/morgue in the State will be required to inform deaths with IDs of the dead persons to Home Ministry in the State's capital. If the Hospital cannot obtain the ID of dead person, the Home Minister will ask an officer to trace his ID. The Home Ministry will send the list of dead persons with IDs to Home Ministry of other States and Central Govt's Home Ministry. The Home Ministry will also try to obtain list of dead persons and their IDs from other Home Ministries of other State and Central Govt. The Home Ministry will send the list of dead persons with IDs to each LRO.
12.2 If a land/flat is owned by a person, and the LRO gets information about the person's death, and nominees DO NOT appear within 30 days, the LRO MUST start a search for his nominees within next 60 days. If the nominees DO NOT arrive within 2 years, the LRO may auction the property, and put the amount in an interest bearing deposit in the name of nominees.
12.3 If nominees appear after 30 days, but before auction, they can get the property transferred after paying transfer tax plus 10% on pending taxes (plus interests).
12.4 If a person is a nominee in any land/flat, and the LRO gets information of his death, the LRO must summon the owner of the land/flat and ask him to remove that person as nominee.
12.5 In case of a inheritance dispute, the LRO will call a Jury to decide. If the value of property is below Rs 10,00,000/-, LRO will call a Jury of 12 citizens. If the value is between 10,00,001 and 1cr, the LRO will call a Jury of 24 citizens. If the value is above is above Rs 1cr, LRO will call a Jury of 36 citizens.

Section   13   : Insurance against bad sales
13.1 Say a counter-party purchased the plot/flat from a party, and deal was approved by the LRO. If later it is found that the party was NOT the actual owner, and actual owner files a claim, then the LRO will pay the market value, as decided by the Jurors, of the land to the actual owner, and counter-party will be able to keep the plot/flat.
13.2 The LRO with the help of police will conduct the criminal investigation to arrest cheat, and the Jury to fine him to recover the loss and imprison a prison sentence of upto 5 years if the value is below Rs 10 lakhs, upto 10 years if the value if between 10 lakhs and 1cr and upto 20 years if the value is above 1 cr.

Section   14   : Other Details
14.1 If the officer does not execute a procedure or ignores an instruction stated in this Resolution/Act, a citizen can file a complaint before the Grand Jurors. In case there are is no Grand Jury, the citizens can appeal to the CM to setup a Grand Jury. But under this law, a citizen cannot complaint before CM, Corporators, CM, MLAs, CM, or MPs.
14.2 The Jurors will judge this Act, guidelines, intentions as well as the facts related to the case

-----------------(end of the DRAFT) -----------------

(*) -- To see the text of proposed "Jury Trial over Central Govt Staff" Act, please click here.