The Stamps and Registration Department of Karnataka has initiated a sweeping statewide audit to probe fraudulent property registrations. This decisive action follows the discovery that sub-registrars allegedly misused a specific exemption meant for court-ordered transactions on the Kaveri 2.0 portal to bypass mandatory digital land record norms.
Exploiting a Legal Loophole
Officials confirmed the audit on Monday, January 12, 2026. The core issue revolves around the portal's design. While Kaveri 2.0 is built to prevent manual tampering and typically requires an e-khata (digital property record) for registration, it contains a separate workflow for properties being registered under direct court orders.
Investigations reveal that this special provision was exploited. Sub-registrars are accused of using the court-order option to register sale deeds for properties where no such judicial directive existed, thereby sidestepping the crucial e-khata verification entirely.
Suspensions and a High-Value Scrutiny
The audit was triggered after the department suspended five sub-registrars in Bengaluru last week. Their alleged fraudulent activities spanned from December 6, 2024, to December 5, 2025. The initial lapse was uncovered at the Sarjapur sub-registrar office in the city.
In a significant development, department sources confirmed that a major Rs 250-crore property deal between Infosys and real estate developer Puravankara is also under the scanner. While the property was not undervalued, officials are examining why the sale deed was registered using the court-order option instead of the standard e-khata process. This transaction occurred at the same Sarjapur office where the initial irregularities were found.
Ongoing Investigations and Legal Recourse
Mullai Muhilan MP, Inspector General of Registration and Commissioner of Stamps, stated that checks are ongoing across Karnataka. "We are checking such registrations across the state. We are conducting an audit on that," he told The Indian Express.
When questioned about the potential cancellation of these fraudulently registered properties, Muhilan indicated that legal provisions exist for such action. The final decision will depend on the scale of irregularities uncovered. Revenue Minister Krishna Byre Gowda had previously stated the government's intent to review the high-value Infosys-Puravankara transaction.
The statewide audit now aims to determine the full extent of this systemic misuse, potentially affecting numerous property titles and transactions registered during the period under review.
