Draft Registration Bill, 2025

GS2 – Governance

Context:

The Ministry of Rural Development (MoRD) has released the Draft Registration Bill, 2025 for public feedback. It aims to replace the century-old Registration Act of 1908, introducing a modernized legal framework to enhance land registration, improve transparency, and promote digital record-keeping.

Why the Bill is Needed

• Outdated Procedures: The current law relies heavily on manual processes requiring physical visits to Sub-Registrar offices and paper documentation, causing delays and inconvenience.
• Rising Transaction Complexity: With property dealings becoming more frequent and intricate, there is a need for faster, more efficient systems.
• Incomplete Digitisation: While some states have adopted online features like e-document uploads and digital identity verification, these are constrained by the limitations of the old Act.
• Demand for Reliable Records: Government agencies and private parties alike require trustworthy and tamper-proof property records.

Key Provisions of the Bill

1. Dual Registration Modes

• Enables both online and offline registration.
• Aadhaar-based or offline identity verification allowed, ensuring Aadhaar is not mandatory.

2. Expanded Mandatory Registration (Section 12)

• Adds several documents to the list of compulsory registration:
  • Agreement of Sale
  • Power of Attorney (POA)
  • Sale Agreement
  • Mortgage by deposit of title deed
• Makes it compulsory to register merger/demerger documents under the Companies Act, 2013.
• Optional Registration (Section 13): Allows registration of unspecified documents, offering flexibility but also legal ambiguity.

3. Institutional Reforms

• Introduces new positions such as Additional and Assistant Inspector Generals of Registration (IGR).
• Government can assign them specific roles and responsibilities in addition to the existing IGR framework.

4. Refusal and Cancellation Provisions

• Grounds for refusal include:
  • Missing translations
  • Content alterations
  • Late submission
  • Applicant ineligibility
• The IGR is empowered to cancel registrations based on fraudulent or illegal content, with written reasons and appeal mechanisms.

5. Reduced Penalties

• Maximum imprisonment for offences lowered from seven years to three years, with or without a fine.

Concerns and Challenges

• Cybersecurity Risks: Storing sensitive data digitally and using e-signatures raises concerns about data breaches and system vulnerabilities.
• Delegation to CSCs: Granting Common Services Centres authority over complex tasks like stamp duty valuation or title transfers may lead to legal inconsistencies.
• Ambiguity in Optional Registration: Section 13’s broad language might create confusion over what documents can be optionally registered.

Way Forward

• Robust Implementation: Ensure effective roll-out mechanisms to prevent delays and procedural gaps.
• Strengthen Digital Infrastructure: Prioritise cybersecurity and data protection to secure digital records and signatures.
• Policy Synergy: Align with Digital India and property rights reforms to make property transactions simpler, faster, and more transparent.