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The Indian government is taking steps to modernize and streamline the process of property registration with a new bill aimed at replacing the existing 117-year-old Registration Act. This initiative, spearheaded by the Department of Land Resources under the Ministry of Rural Development, seeks to introduce online registration of property, mandate the registration of several crucial documents, and integrate digital technologies to enhance efficiency and reduce fraud. The draft legislation has been released for public comment, signaling a collaborative approach towards refining the law and ensuring that it meets the needs of citizens and stakeholders across the country. The move towards online registration is a significant departure from traditional methods, which often involve cumbersome paperwork, long waiting times, and potential for errors. By embracing digital platforms, the government aims to make the process more accessible, transparent, and convenient for all parties involved. This includes enabling electronic presentation and admission of documents for registration, which can save time and reduce the need for physical visits to registration offices. Furthermore, the proposed bill mandates the registration of several key documents that are currently not always registered, such as ‘agreement to sell’, power of attorney, sale certificates, and equitable mortgage arrangements. This is intended to provide greater legal certainty and protection for both buyers and sellers, as well as lenders and borrowers. The registration of these documents will create a more comprehensive record of property transactions, making it easier to verify ownership and resolve disputes. In addition to online registration and mandatory document registration, the bill also proposes the use of Aadhaar-based authentication with informed consent, along with other verification methods for those who do not wish to share their unique ID. This is aimed at reducing fraud and ensuring the integrity of the registration process. By verifying the identity of the parties involved in a transaction, the government can prevent fraudulent activities such as impersonation and forgery. The integration of Aadhaar authentication is also expected to simplify the registration process by reducing the need for other forms of identification. The draft legislation also suggests integration with other record-keeping agencies to enhance the efficiency of information flows. This is intended to create a more seamless and coordinated system for managing land records and property information. By linking different databases and systems, the government can improve data accuracy, reduce duplication, and make it easier for citizens and businesses to access the information they need. The integration of record-keeping agencies is also expected to facilitate better coordination between different government departments and agencies, leading to more efficient and effective governance.
The rationale behind the proposed bill is rooted in the recognition that the existing Registration Act is outdated and no longer adequate to meet the needs of a rapidly changing society. The Department of Land Resources has emphasized the growing use of technologies, evolving socio-economic practices, and increasing reliance on registered documents for due diligence, service delivery, and legal adjudication as key factors driving the need for a forward-looking registration framework. In recent years, the demand for registered documents has increased significantly as businesses and individuals rely on them for a wide range of purposes, including obtaining loans, verifying ownership, and resolving legal disputes. The existing Registration Act, which was enacted in 1908, has not kept pace with these changes, leading to inefficiencies, delays, and increased opportunities for fraud. The proposed bill aims to address these shortcomings by modernizing the registration process and making it more accessible, transparent, and secure. It also seeks to provide greater legal certainty and protection for all parties involved in property transactions. Recognizing the reliance placed on registered documents in legal and commercial contexts, the bill proposes clear and objective grounds under which a registering officer may refuse registration. This is intended to ensure that the registration process is fair and impartial, and that decisions are based on clear and consistent criteria. The bill also provides an enabling provision for appropriate governments to issue rules on cancellation of registration subject to certain standards, including compliance with principles of natural justice. This is intended to provide a mechanism for correcting errors and resolving disputes, while ensuring that the rights of all parties are protected. The provisions regarding refusal of registration and cancellation of registration are intended to ensure that the registration process operates within the bounds of law while upholding the reliability and evidentiary value of registered instruments. This is crucial for maintaining the integrity of the land records system and ensuring that registered documents can be relied upon in legal and commercial transactions.
In addition to modernizing the registration process, the bill also aims to modernize the organizational structure of the registration establishment. This includes the introduction of additional and assistant inspectors general of registration, which is intended to strengthen oversight and improve the efficiency of the registration system. The bill also seeks to streamline the appointment process for registrars in case of vacancies and vests rule-making authority with the appropriate government to ensure alignment with local governance structures. This is intended to ensure that the registration system is responsive to the needs of local communities and that decisions are made at the appropriate level of government. The proposed changes to the organizational structure of the registration establishment are intended to create a more efficient, accountable, and responsive system for managing land records and property information. These changes are also expected to improve the quality of service provided to citizens and businesses. The department of land resources under the rural development ministry has released the draft for public comment after several states decided to amend the law to allow for online registration. While the Registration Act applies across the country, states can amend the law in consultation with the Centre. This highlights the importance of collaboration between the central government and state governments in ensuring that the registration system is effective and responsive to the needs of all stakeholders. The government's decision to release the draft legislation for public comment is a welcome step, as it allows citizens and businesses to provide feedback and suggestions on the proposed changes. This is crucial for ensuring that the final legislation is well-informed and meets the needs of all stakeholders. The public consultation process is also an opportunity to raise awareness about the proposed changes and to educate citizens and businesses about the benefits of online registration and the mandatory registration of key documents. Overall, the proposed bill represents a significant step towards modernizing and streamlining the process of property registration in India. By embracing digital technologies, mandating the registration of key documents, and strengthening the organizational structure of the registration establishment, the government aims to create a more accessible, transparent, and secure system for managing land records and property information. This will benefit citizens, businesses, and the economy as a whole.
Source: Centre proposes online registration of property, docs such as ‘agreement to sell’