Recently, there has been significant attention on one piece of legislation, called the ‘Gujarat Prohibition of Transfer of Immovable Property and Provisions of Tenants from Eviction from Premises in Disturbed Areas Act, 1991’. This piece of legislation, often referred to as the ‘Disturbed Areas (DA) Act’, has been put through amendments with the President’s assent, after passing through the Gujarat Assembly in 2019.
Initial Purpose and Application of the DA Act
The DA Act was first introduced in Ahmedabad back in 1986 due to continuous and large-scale riots that instigated distress sale of properties, majorly by individuals from a specific community. An ordinance was then implemented by the Gujarat government to counteract this issue, which later transformed into the DA Act in 1991. Under this act, a District Collector holds the power to declare certain city or town areas as “disturbed areas”, generally based on previous instances of communal riots.
Consequences of Violating the DA Act
In these notified disturbed areas, any immovable property transfer can only occur once the Collector gives explicit approval on an application from both the buyer and seller. Failing to comply with these regulations results in imprisonment and a fine. The purpose of this act is largely to prevent communal polarisation in distinct parts of the state. Several cities including Ahmedabad, Vadodara, Surat, Himmatnagar, Godhra, Kapadvanj, and Bharuch have this act enforced.
The Need for Amendments in the DA Act
Several reports emerged about anti-social entities selling and buying properties in “disturbed” areas using threats or attractive higher pricing. There were accounts of these elements sidestepping the Collector’s approval by having the transfer deed recorded under the Registration Act’s provisions. This resulted in polarisation or the clustering of localities, leading to the implementation of amendments to increase punishment for violations and plug such loopholes.
Key Amendments to the DA act
A key amendment is that the Collector now has more power to determine if there is a probability of “polarisation” or imbalance in the area. To aid these investigations, a Special Investigation Team (SIT) has been established. The state government can also review decisions made by the Collector, and an advisory committee can be set up to consult on the DA Act. The government can declare any area as a ‘disturbed area’ based on the potential for communal riots or polarisation.
Stringent Provisions for Property Transfer in Disturbed Areas
Transfer of properties in disturbed areas without prior approval from the Collector is now strictly regulated. The definition of ‘transfer’ has been broadened to include the transfer of right, title, or interest in property through sale, exchange, gift, or lease. The Registration Act has been amended so that no property in disturbed areas can be registered without the Collector’s sanction.
Redevelopment and Non-Applicability Clauses in the Act
Property redevelopment is allowed only for the owner’s use. For bringing in new people to the redeveloped property, however, the owner needs permission from the Collector. This Act will not apply to government rehabilitation schemes in a disturbed area, designed to resettle displaced individuals.
Increased Penal Provisions in the Revised Act
The penalties for violation have become steeper with imprisonment between three to five years, and fines up to Rs. 1 lakh or 10% of the jantri rate of the property, whichever is greater. Previously, the punishment was imprisonment up to six months and a fine up to Rs.10,000.
