1. INTRODUCTION

India’s legal framework for property and document registration has been long governed by the colonial-era Registration Act, 1908 (“Registration Act”)[1]. While revolutionary in its time, the 117-year-old Registration Act has become outdated in the face of modern technological and administrative demands. To address the limitations of the Registration Act, the Department of Land Resources under India’s Ministry of Rural Development introduced the draft Registration Bill, 2025 (“Bill”)[2] on 27th May 2025. Currently in the draft stage, the Bill has invited comments / suggestions from stakeholders on or before 25th June 2025.

2. WHAT’S NEW?

Focused on creating a ‘forward-looking registration framework’, the Bill proposes the following:

  • Compulsory registration of additional documents: To ensure legal validity and enforceability of transactions, the Bill has expanded the scope of compulsory registration under Section 12(1) mandating compulsory registration of additional documents namely: (i) agreements to sell immovable property or developer’s or promoter’s agreement; (ii) power of attorney authorising transfer of immovable property with or without consideration; (iii) sale certificates issued by competent authorities; (iv) equitable mortgage arrangements; and (v) certain instruments based on court orders.
  • Filing mortgage documents with the registering officer: The Bill specifically requires banks, financial institutions, and other creditors, granting loans based on mortgage by deposit of title deeds to file a copy of the title deed with the registering officer within whose jurisdiction the mortgaged property is situated and notify such officer about such mortgage.
  • Online first approach: The Bill introduces the much-awaited mechanism for end-to-end digital registration. It further provides for digital maintenance of records, and electronic issuance of registration certificates. It also facilitates Aadhaar-based authentication with informed consent, while offering alternative modes of authentication (for those without Aadhaar or who opt not to use it) to ensure broader accessibility. For this purpose, a dedicated section for identity verification for persons presenting documents for registration have been inserted in the Bill.
  • Concept of ‘appropriate government’: The concept of ‘appropriate government’ has been introduced in the Bill to mean the Central Government of India for union territories without legislature; Union Territory Governments for union territories with legislatures; and State Governments for the respective states (“Appropriate Government”). This expands the scope for governance in registration related matters as opposed to the Registration Act which vested exclusive authority in the state governments over matters relating to registration.
  • Inspectors of registration: The Appropriate Government has been empowered to appoint additional tires to the Inspector General for Registration (“IGR”), including an additional inspector general of registration, joint inspector general of registration, deputy inspector general of registration, and assistant inspector general of registration. Implementation of such hierarchical expansion would enhance the efficiency and supervision of the registration process.
  • Clear grounds for refusal of registration: Introduction of new Section 58(1) of the Bill consolidates the dispersed provisions of the Registration Act as regards grounds on which a registration officer may refuse to register a document and incorporates various state amendments. These grounds include, inter alia:
  • (i) documents not drafted in a language commonly understood and without appropriate translations; (ii) documents with unattested interlineations, blanks, and erasures; (iii) where the identity of the executors is not satisfactory to the registering officer; and (iv) documents related to the transfer of property owned by the Government of India or a state government, or any authority or undertaking by the Government of India or a state government.
  • Grounds for cancellation of registration: The Bill further introduces specific grounds for which an adjudicating authority, not below the rank of an IGR (“Adjudicating Authority”), appointed by the Appropriate Government, may cancel the registration of a document suo moto or upon a complaint. The Bill mandates the Adjudicating Authority to: (i) notify all parties of the interest to the document regarding the cancellation; (ii) issue a show cause notice to the executors and provide them with an opportunity to be heard; and (iii) record its reasons for cancellation in its order and make a note in the books as prescribed. Additionally, the Bill provides for appeals against the cancellation order, which can be made before an appellate authority. 
  • Addition of defined terms: ‘Execute’, ‘copy’, and ‘mental incapacity' are some key terms which now find a place in the section pertaining to definitions. The Bill also adds reference to the Information Technology Act, 2000 and the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 for any undefined terms to address the ambiguity in any terms undefined.

Other albeit small but indeed noticeable tweaks in the Bill include: (i) permitting appearance of exempted persons at the registration office through electronic means, which was earlier not an option; (ii) reduced term of imprisonment from 7 (seven) to 3 (three) years which may be imposed as a penalty; and (iii) amended references in the context of an individual to ‘her’ / ‘she’ as opposed to the typical references under statutes as ‘his’, ‘him’, ‘he’.

3. A TRUE OVERHAUL OR NOT?  

Keeping up with digital times, the Bill promises to bring in desired changes and remodel the existing registration laws. While the consequences of non-registration of compulsorily registrable documents remain unchanged, the addition of new documents to this list will fix the loopholes, and perhaps curb disputes, which earlier allowed parties to assert rights or obligations based on such unregistered documents.

While the digitisation related provisions in the Bill mark a pivotal step in enhancing administrative efficiency and smoother completion of tasks that traditionally suffer from bureaucratic delays, the success of this initiative hinges on the adoption of digital tools coupled with the robustness of backend implementation. A critical element of this transformation is effective deployment of backend software and supporting processes. To ensure long-term success, it is essential that these new systems are compatible with existing frameworks used by various record-keeping agencies including at the grassroot levels. Interoperability will be the cornerstone of this shift, and mapping the integration points between legacy systems and new digital platforms must be a top priority. Another significant benefit of this digital initiative lies in its impact on property data. By streamlining access to property-related information and digitising land records, authorities can ensure that data is accurate, accessible, and up-to-date.

Equally important is the protection of personal data, which must be embedded into both, the legislative framework and technological implementation. As digitisation of sensitive records increases, so does the potential for data breaches and misuse. Therefore, a multi-layered approach to data security spanning from legal safeguards to encryption and access control measures is imperative from the outset.

This legislative update arrives in the backdrop of the ongoing initiative of the Government in replacing archaic laws to align them with today’s fast-changing requirements and positioning the Bill as a key step in modernising property-related administrative processes.

[1] indiacode.nic.in/bitstream/123456789/2190/5/A1908-16.pdf

[2]  https://cdnbbsr.s3waas.gov.in/s3d69116f8b0140cdeb1f99a4d5096ffe4/uploads/2025/05/ 20250526906486876.pdf

Authors:

Ankit Sinha

Partner, Juris Corp

Email: [email protected]

Aditi Sinha

Senior Associate, Juris Corp

Email: [email protected]

Yashassvi Periwal

Associate, Juris Corp

Email: [email protected] 

Disclaimer:

This article is intended for informational purposes only and does not constitute a legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This article is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial / quasi-judicial authorities may not take a position contrary to the views mentioned herein.

[1] indiacode.nic.in/bitstream/123456789/2190/5/A1908-16.pdf

[2] https://cdnbbsr.s3waas.gov.in/s3d69116f8b0140cdeb1f99a4d5096ffe4/uploads/2025/05/ 20250526906486876.pdf