Banks question legality of Karnataka's property cards

Top banks have expressed concerns over the legal validity of property cards that Karnataka is issuing as part of ongoing land surveys, and they argue that loans and mortgages cannot be made solely on the basis of this document.

At least seven lenders - Union Bank of India, Bank of Baroda, Canara Bank, Karnataka Bank, Karnataka Vikas Grameena Bank, Karnataka Gramin Bank and Yes Bank - have asked the government to recognize property cards by amending existing laws, documents available with DH show.

But, a senior government official said banks are ill-informed.

Property cards are being issued under the Centre’s Survey of Villages Abadi and Mapping with Improvised Technology in Village Areas (Svamitva) scheme and the state government’s Urban Property Ownership Records (UPOR) project.

Under Svamitva, 26,588 property cards have been issued in 396 villages of Belagavi, Davangere, Hassan, Kalaburagi, Koppal, Mysuru, Ramanagara and Tumakuru districts where drone-based land surveys are taking place.

While Svamitva covers residential properties in rural areas, the revenue department’s ongoing survey is covering agricultural and residential plots even in urban areas.

Over 4,000 property cards have been distributed in Bengaluru’s Pattabhirama Nagar and Ganesh Mandir wards.

These projects promise to make land ownership dispute-free as the existing nature of holdings are presumptive in nature, prone to litigation.

Banks have told the government that property cards will not confer absolute ownership.

“...the state government has not made any amendments to the applicable laws to recognise the property card as a proof of ownership/title. In the absence of any law being enacted by either central/state government, the property card cannot be considered as the sole basis for recognising ownership/title over a land,” Canara Bank said in its opinion sent to the government.

Stressing on the need to bring property cards at par with registered title deeds, the Union Bank of India said it needs “further clarity about right, title and interest of other claimants... before we can accept the document”.

If property cards are not recognized as legal proof of ownership, then they “will become another legal document which does not conclusively prove ownership,” Bank of Baroda said.

Official’s take

Commissioner for Survey, Settlement & Land Records Munish Moudgil said banks seem “ignorant” about provisions of the law.

“Property cards are being issued under Sections 106, 112, 148 and 152 of the Karnataka Land Revenue Act. So, they are absolutely legal,” he told DH, adding that he would write to banks and clarify.