India’s legal system has delivered a crucial reminder to property buyers: registration alone doesn’t guarantee ownership. A recent Supreme Court decision in the case of Mahnoor Fatima Imran vs M/S Visweswara Infrastructure Pvt Ltd highlights the gaps between paperwork and actual rights, forcing homebuyers and investors to rethink their due diligence process.
Legal experts emphasize that property registration, while mandatory for transactions above ₹100, is just one piece of the ownership puzzle. “Full payment, physical possession, and holding original title documents are equally critical,” explains Harsh Parikh of Khaitan & Co. Rakesh Malhotra of PRIME Developments adds that registration merely creates a presumption of validity—it doesn’t override defects like fraudulent sales or unauthorized transfers.
Even properly registered deals can collapse if underlying issues surface. Courts may invalidate transactions involving unpaid dues, fraud, or sellers lacking legal capacity, such as minors or those with mental incapacity. Aman Sharma of Aarize Group points out that regulatory oversights, like missing land-use approvals, can also nullify a sale. Essentially, a registered deed offers no immunity against legal challenges or defective transactions.
To avoid pitfalls, experts recommend thorough verification. Buyers should scrutinize title histories spanning 30 years, confirm encumbrance-free status, and check for pending disputes or tax liabilities. Public notices and legal consultations can further safeguard interests. “Ownership isn’t proven by a piece of paper,” warns Malhotra. “It’s about ensuring the seller has legitimate rights to transfer.”