How land can be a shared asset

The Karnataka Land Revenue Act, 1964, was originally enacted to bring together the different regional land laws of the erstwhile Mysore State.

Over the last six decades, the law has been amended many times to address issues such as unauthorised occupation, land conversion and urbanisation.

These piecemeal changes have left the framework fragmented and outdated. Today, the Act does not adequately respond to modern challenges: rapid urban growth, manipulation of records, unfair valuation and disputes that remain tied up in courts for years.

Land records in Karnataka are still prone to fraud and tampering. The conversion of agricultural land for urban or industrial use is often slow and opaque, giving rise to corruption. Disputes over titles and boundaries take years to resolve, discouraging investment and complicating development projects. If these issues remain unaddressed, Karnataka risks falling behind other states and countries that are modernising their land governance systems.

In recent years, policymakers in Karnataka have initiated discussions on overhauling land revenue governance. Hence, a new Land Revenue Act would allow the state to move beyond incremental fixes and create a forward-looking framework. Such a law would not only improve administration but also turn land into a secure and productive asset.

One area of reform is to treat land as a tradable asset. Global experience shows that land and real estate can be made liquid and transparent through tokenisation, where property is divided into digital shares that can be traded securely. Karnataka can pioneer fractional land ownership within India, giving farmers, cooperatives and small investors new opportunities to unlock value. Alongside this, the state could enable a land revenue securities market, regulated under Sebi guidelines but administered through a state digital land authority, where landowners raise capital by securitising future revenues or leases, rather than resorting to distress sales.

Technology can also improve governance. Predictive models can guide land use planning by identifying the best areas for urban expansion, industrial development or ecological preservation. This would reduce speculative conversions and ensure more rational use of land. Land titles stored on a blockchain ledger would be tamper-proof, ending the cycle of fake entries, forged documents and prolonged disputes. Every parcel of land could be linked to a digital property card with a QR code, making ownership and encumbrances instantly verifiable.

The benefits of such a law are clear. Transparent titles would reduce fraud and land grabbing, while faster and more predictable approvals would cut delays and corruption. Thus, Karnataka would be able to establish itself as a leader in digital land governance in India, drawing lessons from countries that have already adopted tokenisation and modern title systems.

In practical terms, the new Act should establish a Digital Land Authority of Karnataka to oversee blockchain-based records, operate the revenue market and certify surveyors and valuation tools, whereby the Revenue Department would remain the apex authority.

All land records would be digitised and secured on a state blockchain ledger. Each property would carry a digital property card, with satellite imagery and automated validation ensuring accurate and up-to-date entries. The law should provide that digital records are presumed correct, subject only to review by a land tribunal.

On land use, zoning and master planning should be informed by predictive tools. A single-window digital system should handle all conversions and approvals within fixed timelines. Reasons for approvals or rejections must be recorded and made public. Rules should allow mixed-use zoning in suburban areas, enabling farmers to pursue small businesses without fear of violating outdated restrictions. At the same time, landowners who conserve forests or practise sustainable farming should receive tax benefits.

While technology-enabled land revenue governance is promising, it also faces key challenges. Land tokenisation and fractional ownership raise legal issues on title, succession and tenancy rights. Blockchain records, given their reliance on legacy data, can lock in old errors if such data is not rigorously verified first and thus, may exclude small farmers and elderly landowners. AI-based planning, which has often been observed to be opaque and biased, risks weakening local participation. In addition to these, it is foreseeable that the costs involved for such a transition, both financial and institutional, would provoke resistance from vested interests, which may dilute the objectives of this overhaul.

Nonetheless, by treating land as a tradable asset through tokenisation and revenue securities and by adopting AI-driven planning and blockchain-based titles, Karnataka can secure ownership, curb fraud and
improve revenue efficiency. At the same time, these reforms will simplify transactions, attract investment and strengthen the Ease of Doing Business. Therefore, a new Land Revenue Act can safeguard administrative integrity while positioning Karnataka as a national leader in technology-driven land governance.

(The writer is Research Fellow at Vidhi Centre for Legal Policy)