The President of India has given his assent to the Registration(Gujarat Amendment) Act, 2016, under which all real estate promoters or developers will have to register their association with local registrars.The bill was passed in February 2016 by the state assembly According to the statement of objectives of the bill, “Section 17 of the Registration Act, 1908, which is a central act, provides for the compulsory registration of documents as are enumerated in the said section. At present, it is not compulsory for the promoter or the developer to register the instrument by which they are authorized or any immovable property is transferred. It is considered necessary to make this kind of instrument compulsorily registerable, so that there will be a public record in that regard…to prevent financial irregularities.“

The instrument relating to constitution of partnership is also not required to be registered compulsorily, the statement says. “Also the instrument by which any immoveable property is taken as a share on the dissolution of partnership by any of the partners other than a partner who brought their property as a share to the partnership is also not required to be compulsorily registered.“ It is considered necessary to make the registration of the above said instruments compulsory so that any transaction with regard to the immoveable property gets registered, the statement says.