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Legal Eligibility and Recent Amendments (Post-2020) in Indian Property Law

The real estate sector in India has witnessed a transformative shift in recent years, especially after 2020. These changes stem from judicial pronouncements, government reforms, and state-specific implementations aimed at bringing transparency, accountability, and inclusiveness into the property ecosystem. One of the most critical aspects of property transactions is understanding who is legally eligible to own and transfer immovable property, and how recent amendments have impacted these rights.

Legal Eligibility to Own and Transfer Property

Under Indian law, the Transfer of Property Act, 1882, governs the eligibility to own, purchase, and transfer immovable property. Legal eligibility varies depending on the nature of the individual or entity involved.
  1. Indian Citizens
Indian citizens, whether residing in India or abroad, can freely purchase and sell immovable property, subject to compliance with local municipal laws, planning regulations, and stamp duty requirements.
  1. Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs)
NRIs and PIOs are permitted to acquire residential and commercial property in India under the Foreign Exchange Management Act (FEMA), 1999. However, they are not permitted to buy agricultural land, plantation property, or farmhouses. They can inherit any type of property, including agricultural land.
  1. Foreign Nationals
Foreign nationals who are not of Indian origin cannot acquire immovable property in India without the prior approval of the Reserve Bank of India. Foreign companies with offices or subsidiaries in India may lease property for up to five years without requiring prior approval.
  1. Minors and Persons with Legal Disabilities
Minors can own property, but transactions must be carried out by their legal guardians, and often require permission from the civil court to ensure protection of the minor’s interest. Similarly, persons with mental disabilities can only engage in property transactions through court-appointed guardians under the Mental Healthcare Act, 2017 or National Trust Act, 1999.

Key Amendments and Developments Since 2020

In the post-pandemic period, both central and state governments have introduced significant changes to property laws and registration processes. These reforms are aimed at modernizing land governance, reducing disputes, and enabling ease of transactions.
  1. Digitization of Land Records and Titles
The Digital India Land Records Modernization Programme (DILRMP) received a fresh push post-2020. Karnataka, for instance, has expanded the Bhoomi portal and integrated RTC (Record of Tenancy and Crops), mutation, and revenue maps online. This enables property buyers and legal professionals to verify land titles digitally, reducing reliance on physical documents.
  1. e-Khata and Unified Property Identification
In Karnataka, the implementation of e-Khata—a digital form of the property tax document—has been enhanced. Municipalities have begun issuing unique property identification numbers to streamline records and reduce duplication, particularly in BBMP and BDA jurisdictions.
  1. Stamp Duty Reforms
To revive the real estate market post-COVID-19, several states introduced concessions on stamp duty:
  • Karnataka reduced stamp duty to 3% for properties valued between ₹21 to ₹35 lakhs.
  • Special rates and rebates were introduced for first-time buyers and women owners.
This move has made property more accessible to the middle-income population and has helped formalize many previously unregistered sales.
  1. Strengthening of RERA
Although the Real Estate (Regulation and Development) Act, 2016 (RERA) predates 2020, its implementation has matured post-pandemic. Several state RERA authorities have issued stricter compliance guidelines:
  • Real-time updates of project status are now mandatory.
  • Penalties for delays and false advertising have increased.
  • Karnataka RERA (K-RERA) has improved digital accessibility for project registration and buyer complaints.
  1. Power of Attorney Transactions Under Scrutiny
The Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011) case had already deemed PoA sales invalid for transferring property titles. Post-2020, many state governments have issued circulars and orders to enforce mandatory registration of Power of Attorney documents, especially for NRI transactions. Karnataka’s sub-registrar offices now require valid and registered PoA with specific clauses to authorize property transfers.
  1. Succession and Inheritance Clarifications
The Supreme Court’s decision in Vineeta Sharma v. Rakesh Sharma (2020) reaffirmed that daughters have equal rights in coparcenary property under the Hindu Succession Act, 1956, irrespective of whether the father was alive in 2005 (when the Act was amended). This has had wide implications for ancestral property division and is now a central consideration in title verification.
The Indian property law regime post-2020 reflects a paradigm shift toward digitization, inclusivity, and accountability. Understanding the legal eligibility to hold and transfer property, and keeping track of amendments, is essential for any stakeholder—be it a buyer, seller, investor, or legal professional. From improved land records to stamp duty concessions and succession rights, these reforms are reshaping the property ownership landscape in India. Whether you’re planning to invest in urban real estate or deal with inherited rural property, legal awareness remains the key to secure and dispute-free transactions.
Need help with property due diligence or documentation? Visit www.realtylegal.in for expert legal support across Karnataka.

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