The government has unveiled a new draft law called the Registration Bill, 2025, aimed at digitalisation of land records. If enacted, the Bill would not only make it easier for citizens to register their properties but also help reduce property disputes, explains Banasree Purkayastha
What the draft Bill proposes
Proposing to replace the colonial-era Registration Act of 1908, the Registration Bill, 2025 aims to modernise registration of immovable properties across the country by taking it online and linking it to Aadhaar. Under the Registration Act, documents related to immovable property like sale deeds, gift deeds, mortgage deeds, leases are subject to registration. The Bill has expanded the list of documents that must be compulsorily registered to include Wills, powers of attorney, and other court decrees and orders related to property rights. The Bill has also proposed clear grounds for refusal or cancellation of registration, thus enhancing the legal validity and reliability of registered documents. There will also be compulsory registration of instruments in respect of amalgamation, reconstruction, merger, and demerger of companies and transfer of immovable property at the time of formation of companies pursuant to any order passed under the Companies Act, 2013. Drafted by the Department of Land Resources under the ministry of rural development, the draft Bill has also proposed an alternative verification mechanism for those who do no possess Aadhaar.
Why an overhaul of the existing law is needed
As per data from the ministry of consumer affairs, food and public distribution, there were 50,258 real estate cases pending in consumer courts at the national, state, and district levels as of July 31, 2024. Causes of land and property disputes include unclear titles, inadequate record-keeping, and disputes over inheritance, co-ownership, or easements. Approximately 25% of all cases decided by the Supreme Court involve land issues. “By moving away from the outdated Act, the Bill tackles issues like unclear titles and fraudulent transactions. Digital records make it harder for bad actors to forge documents or manipulate ownership claims,” says Sonam Chandwani, managing partner, KS Legal & Associates. “Faster verification and standardised processes could also unclog the courts as clear records pre-empt many conflicts.”
Streamlining registrations
Property registration offices across the country, typically sub-registar’s office in each district, are known for their long-winded processes and are hotbeds of corruption with most people unable to get their properties registered in municipal records without the help of touts and speed money. Under the existing law, a property owner or buyer has to physically visit the registration office to submit documents. The new Bill says one can now do this “in person or through electronic means.” This is a big improvement and would mean faster processing with little room for manipulation of documents or bribes. Electronic submission and verification of documents followed by issuance of digital registration certificates will inevitably lead to increased transparency not only in the registration process, but also for any other official purpose such as sanction of loans, mortgage of property, proof of domicile, etc.
Several states have similar laws
Land is a state subject and states such as Kerala, Rajasthan, Telangana and Andhra Pradesh have implemented similar legislations. Maharashtra introduced the Maharashtra Registration of Documents (Amendment) Act, 2017 wherein it introduced online registration and appointment processes to reduce delays, e-registration facility for advance booking and document upload, etc. Most recently, it introduced the “One state One registration’ initiative wherein property buyers and sellers in Maharashtra could register their properties from anywhere in the state, says Anuj Puri, chairman – Anarock Group. “For instance, if a person is living in Mumbai but is buying a property in Nagpur or Pune or anywhere else, then he can register his/her property from Mumbai itself with Aadhaar and income tax documents. This makes it very easy for both buyers and sellers and saves time and effort as well,” he says. A central law would thus establish a uniform system throughout the country.
Some pain-points in the draft norms
In case of inherited property, especially in rural India, citizens could face hurdles in proving the chain of ownership. There could be multiple issues like lack of proper documents for inheritance, multiple previous ownerships, etc. As Puri says, a property may have multiple owners which may cause delays in registration as all owners must agree and sign. “The Bill doesn’t specify clearly a more simplified way to register an inherited property especially if there are Will disputes, etc.”
Legal aid for rural and marginalised communities would ensure equitable access to the new framework, says Chandwani. Ironclad cybersecurity measures need to be incorporated to protect digital land records from hacking or tampering. “The Bill could mandate pre-litigation mediation for property disputes, specially pertaining to stamp duty disputes. Setting up dedicated fast-track tribunals for residual disputes, with strict timelines and expert surveyors, would accelerate resolutions,” she adds.