Construction

Proposed Land Registration Bill draws mixed response from experts on effectiveness

Experts feel that the Bill’s alignment with anti-benami efforts is intriguing but incomplete, reflecting a half-hearted stab at tackling illicit property holdings

As the government prepares to introduce the Land Registration Bill in the forthcoming Monsoon Session of Parliament, experts have mixed opinion over the effectiveness of the Bill.

The Rural Development Ministry has put a draft of ‘The Registration Bill’ in the public domain to seek comments from stakeholders before finalising it for introduction in Parliament. The aim is to align it with a modern, online, paperless and citizen-centric registration system.” Once enacted, the Bill will replace the pre-Constitution Registration Act of 1908.

The draft has proposed five key features — Facilitating online registration, Expanding the scope of compulsory registration, Reinforcing legal and procedural rigour, Institutional strengthening and governance reforms and Accessible and citizen-centric processes.

Vivek K Chandy, Joint Managing Partner, JSA Advocates and Solicitors, noted that apart from digitising the registration process to improve accessibility and transparency, the Registration Bill 2025 appears to address strategic and regulatory challenges. He explained that identification and acquisition of properties for government and private projects will become more efficient with updated and digitised property records being more easily available. The bill will also promote centralisation of land records and reduce States’ monopoly over property record management.

“A digitalised and tamper-proof registration system could reduce litigation significantly as many disputes in India are connected with unclear titles,” he said.

Though Sonam Chandwani, Managing Partner at KS Legal & Associates, acknowledges that the draft is a commendable leap towards modernising India’s archaic land registration framework, she says that it’s a reform teetering on the edge of great promise and potential pitfalls.

On one hand, the shift to a digital, paperless system with Aadhaar-enabled verification and expanded compulsory registration is a visionary move to curb the rampant fraud that has plagued property transactions for decades. It’s a bold attempt to empower citizens with transparency and streamline economic activities like mortgages and real estate, which could inject vitality into a sluggish sector.

However, “the devil lies in its execution. Without foolproof cybersecurity and rigorous training for registering officers, this could devolve into a bureaucratic nightmare, leaving vulnerable citizens exposed to data leaks or exploitation by tech-savvy fraudsters. The government’s intent to centralise records might also raise eyebrows among privacy advocates, and I’d argue it’s a double-edged sword that needs judicial oversight to prevent it from morphing into a surveillance tool,” she said.

Another important aspect of the Bill is its potential to curb benami transactions.

Chandy said: “The Bill can be an initiative in curbing benami and black money transactions. By mandating digital records and linking Aadhaar and PAN, the Registration Bill 2025 makes it harder to conceal ownership or utilise unaccounted funds in property transactions.”

However, Chandwani is not so optimistic. She feels that the Bill’s alignment with anti-benami efforts is intriguing but incomplete, reflecting a half-hearted stab at tackling illicit property holdings. The enhanced documentation requirements and digital audit trails could, in theory, arm agencies like the Income Tax Department with the tools to sniff out benami transactions, but the absence of explicit provisions targeting such practices leaves a gaping hole.

“As a legal observer, I’d say this is a missed opportunity to fortify the Prohibition of Benami Property Transactions Act imagine the impact if the Bill mandated cross-verification with financial records,” she said.

Published on June 10, 2025

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