OTP rule for reconveyance deeds leaves Karnataka home loan borrowers stranded
Bengaluru: Home loan borrowers across Karnataka are facing delays in securing reconveyance deeds as banks and registration authorities remain at odds over the implementation of OTP-based verification under the state’s Kaveri 2.0 system.
As per a report published by Deccan Herald, the department of stamps and registration has made Aadhaar-based OTP authentication mandatory for both property owners and bank officials while processing reconveyance deeds, a document required to formally remove a bank’s charge on a property after a loan is fully repaid. However, many bank branch managers have been reluctant to share OTPs sent to their personal mobile numbers, citing the absence of formal guidelines from the Reserve Bank of India or the state government and fears of fraud or future legal liability.
Until about a month ago, officials of nationalised banks were exempt from appearing in person at sub-registrar offices or providing OTPs. Earlier, banks executed reconveyance deeds using branch TIN numbers along with Aadhaar details of authorised officials. The sudden shift to OTP-based verification has disrupted the process, leaving property owners unable to complete registration formalities, which are essential for resale, mutation and other transactions.
Officials from the stamps and registration department said the change was introduced to curb fraudulent applications, including cases where reconveyance deeds were sought without full repayment of loans. Inspector General of Registration and Commissioner of Stamps Mullai Muhilan M P said the move was in line with Section 7 of the Aadhaar Act, 2016, which mandates identity verification. He maintained that the process had not been made more complex and that applications generated through citizen logins did not require separate government orders to banks.
Property owners, however, have complained that navigating the Kaveri 2.0 portal has become difficult without assistance, pushing many to depend on agents. The department has rejected claims that the system is complicated, stating that the intent is to discourage the use of middlemen.
Bank officials remain cautious. Some said they were uncomfortable sharing OTPs with customers or agents, as banks routinely advise against disclosing such information. An assistant manager at a State Bank of India branch in Hubballi said the risk of misuse was unclear, particularly when OTPs were linked to personal Aadhaar numbers. Another branch manager from Dharwad said she was questioned by the Lokayukta over multiple property transactions associated with her Aadhaar after she had shared several OTPs in a single day.
The Karnataka State Level Bankers’ Committee’s convenor, M Bhaskara Chakravarthy, who is also general manager at Canara Bank, told DH that banks had not received any official communication on the matter. He added that, in view of the difficulties faced by borrowers, officers had been orally advised to cooperate with property owners until clarity emerges.
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Vijay unable to prove majority, not invited for CM oath ceremony: Sources
Chennai: Actor-politician Vijay has reportedly not been invited to take oath as Chief Minister of Tamil Nadu after failing to demonstrate support from the required number of MLAs, sources in Raj Bhavan said.
According to media reports that quoted sources in the office of R.N. Ravi Arlekar, Vijay could not prove the backing of 118 legislators, the majority mark in the 234-member Tamil Nadu Assembly.
Despite last-minute efforts to secure support from the Viduthalai Chiruthaigal Katchi (VCK), Amma Makkal Munnetra Kazagam (AMMK), and an IUML legislator, Vijay reportedly managed support from only 116 MLAs, falling short by two members.
Sources said Vijay failed to submit letters of support from the VCK and the Indian Union Muslim League (IUML).
Later, the IUML issued a statement clarifying that it was not part of the TVK-led alliance.
Meanwhile, AMMK leader T.T.V. Dhinakaran is also said to have informed the Governor that his party would support the All India Anna Dravida Munnetra Kazhagam (AIADMK) instead.
Earlier in the evening, Vijay had met Governor Arlekar and staked claim to form the government, stating that he enjoyed the support of 118 MLAs.
