Property registration: A law for reform

The draft Registration Bill 2025, unveiled by the Central government, is an important step towards modernising India's property registration system. The status of property and the way it is handled and transacted have a bearing on personal, familial and societal relations. Through a digital upgrade on the existing paper-based system, the government proposes to implement a major shift, replacing the colonial, 117-year-old Registration Act of 1908. The Bill has been placed in the public domain for feedback from the people and other stakeholders, and the inputs would be taken into consideration while finalising the legislation. Registration is a state subject – when the Bill is enacted, it will provide the framework for states to implement their own laws and rules for the registration of property documents.

The Bill will enable online registration of property, electronic presentation and admission of documents, issuance of electronic registration certificates and digital maintenance of records. Verification is to be done with Aadhaar credentials but other options will be available for those who choose not to use Aadhaar. Every property transaction that is relevant to ownership such as the accordance of power of attorney, issuance of sale certificates, mortgages and court orders will have to be registered. Registration of land remains a laborious process in the country despite efforts over time to simplify the procedures and technological interventions. Similar efforts to establish safeguards to counter large-scale corruption and illegal practices in property registration have also returned moderate results – land dealings still involve extensive transactions of unaccounted money, posing a threat to the economy. Land is widely considered an asset that generates and absorbs black money. The new law will, hopefully, make the registration process simpler and transparent. It promises a more accessible and citizen-centric process as the Bill promotes the use of plain language for drafting documents and adoption of transparent procedures, especially for individual citizens and small businesses. With the records online, retrieval of documents will also become easier.

Online registration of properties is a crucial provision for accessing and processing documents and for avoiding delays in taking financial, administrative and legal decisions. Once the new model stabilises, the need for agents and middle-men who thrive in, and even control, the present system will be reduced. It needs to be noted that the success of the new system also depends on the clarity and authenticity of the land records. Ensuring the reliability of these documents is a different, harder challenge that needs to be prioritised.