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Hawala worries in Karnataka sub-registrar officesRecently, a circular was issued banning demand draft (DD) and cash receipts at all sub-registrar offices
Akram Mohammed
DHNS
Last Updated IST
According to sources in the department, the order was issued after complaints that money transferred for property transactions were being misused. Credit: iStock
According to sources in the department, the order was issued after complaints that money transferred for property transactions were being misused. Credit: iStock

The Department of Stamps and Registration has decided to opt for digital payments at sub-registrar offices after coming across hawala transactions and instances of government funds being transferred into private bank accounts at the offices.

The developments prompted the department to issue a circular recently banning demand draft (DD) and cash receipts at all sub-registrar offices. Asking officials to use only online mode for all payments, the department warned of strict action against those accepting cash payments for various services offered.

"(As) government funds were illegally transferred to private accounts, and government head of accounts (HoA) and offices are being used for illegal and hawala transactions, accepting cash and demand drafts (DD) at all sub-registrar offices are banned," the order said.

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All transactions should be through bank transfers or digital payments, the circular dated May 31 and issued by K Ekesh Babu, Under Secretary to the state government, Revenue Department (Stamps and Registration), said.

When contacted, KP Mohan Raj, Inspector General of Registration and Commissioner of Stamps, said that the order was based on a complaint filed four months ago by a sub-registrar from Sringeri in Chikkamagaluru district.

"By the order, we are trying to abolish cash transactions at the offices," he said.

In the complaint filed in January this year, Sringeri sub-registrar HS Cheluvaraju had alleged unlawful remittance and drawing under the government of HoA. He had submitted bank account numbers that were used for the purpose.

According to sources in the department, the order was issued after complaints that money transferred for property transactions were being misused.

"The amount was not realised in the government HoA even though documents reflected payment."

In another irregularity, there were cases where the DDs were not honoured. There was also a delay in realisation of amounts debited through DDs.

"In several sub-registrar offices, mismanagement to the tune of crores was detected. There was a departmental inquiry instituted, officials suspended and demoted," a senior official said under the condition of anonymity.

According to a sub-registrar, the decision of cashless transactions could inconvenience those seeking basic documents such as Encumbrance Certificates in rural areas, which are available at the offices for the payment of Rs 35.

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(Published 07 June 2021, 00:53 IST)