Context:

The Supreme Court of India, in a landmark judgment, described buying and selling property in India as a “traumatic” experience, highlighting that property disputes account for 66% of civil litigation in Indian courts. The Court recommended modernising property laws and using Blockchain technology to enhance transparency and efficiency in property registration.

Key Observations of the Court:

Challenges in Property Transactions:

·        Fake documents and land encroachments.

·        Delays in verification and cumbersome procedures at sub-registrar offices.

·        Excessive reliance on intermediaries.

·        Requirement of two witnesses for document verification.

·        Variability in registration procedures across states, since land is a State subject under the Constitution.

Colonial-Era Laws: The current system is governed by 19th-century colonial laws, such as the Transfer of Property Act, 1882, the Indian Stamp Act, 1899, and the Registration Act, 1908. The court noted these laws are no longer suited for the modern era.

Presumptive vs. Conclusive Title: The core issue is that registration under the current law provides only presumptive ownership (which can be challenged), not conclusive proof of ownership guaranteed by the state. This places a substantial burden on the buyer to manually verify title histories, making the process unreliable.

Recommendations:

1.       Adoption of Blockchain Technology:

o    Encode land titles, ownership histories, encumbrances, and transfers on a distributed, immutable ledger.

o    Enhance the integrity of title records and strengthen public trust.

o    Integrate cadastral maps, survey data, and revenue records for a single, verifiable framework accessible to authorities and the public.

2.      Modernisation of Property Laws:

o    The Law Commission of India is directed to prepare a report to restructure colonial-era laws, including:

§  Transfer of Property Act, 1882

§  Registration Act, 1908

§  Stamp Act, 1899

o    Objective: Align property laws with modern technology and administrative requirements.

Significance:

• • Reduces public hardship and litigation related to property disputes.
  • Enhances ease of doing business and investor confidence.
  • Integrates technology to ensure transparency, accountability, and trust in the property ecosystem.

Conclusion:

Implementing Blockchain-based property registration and revising archaic property laws could transform India’s real estate sector, protect property rights, and reduce court burdens, marking a significant step toward digital governance and institutional reform.