The Ministry of Rural Development (MoRD) has invited suggestions on the new draft Registration Bill 2025, which seeks to replace the 117-year-old Registration Act of 1908. The Bill, the MoRD says, will digitise the registration of property documents, enhance transparency, and maintain digital records. Can it deliver?
The Registration Bill, 2025 was introduced to establish a modern framework for registration of land documents, and a more citizen-centric approach. Some key features include:
Online/offline registration: End-to-end registrations, from the presentation of documents to their submission, can either be done at the office of the Sub-Registrar or via electronic means. Identity verifications will be carried out via Aadhaar or through an offline verification process (Section 29 (3)). No person can be denied registration of their documents if they do not possess an Aadhaar number (Section 29 (4)).
Expanded list of compulsory docs: The Bill expands the list of compulsory registration of documents under Section 12 with the inclusion of agreement of sale, power of attorneys (POAs), sale agreements, mortgage by deposit of title deed, and merger and demerger of companies under the Companies Act, 2013 (Section 12(f-j)).
The Bill also provides for simplified optional registration under Section 13 that Section 12 does not cover but fails to specify which documents come under this category, leaving it to wide interpretation.
Introducing new positions: In addition to the post of Inspector General of Registration, the Bill introduces Additional and Assistant Inspector Generals of Registration. Section 4(5) states: “The appropriate government may prescribe the terms and conditions of service, and the duties of the officers appointed under sub-section (4) and authorise them to exercise all or any powers and duties of the Inspector General of Registration.”
Reasons for refusal/cancellation: Section 58 of the Bill lists the reasons upon which a document may be refused for registration, including documents submitted without true translation, erasure of content from the documents, documents submitted after the prescribed period of four-months (this is not applicable on wills), or if the person concerned is a minor, mentally incapable or deceased.
Section 64(3) states that the Inspector General of the Registration is vested with the power to cancel any registration that appears to be made based on false information, in breach of the provisions of the Act, or if the document was made on a transaction that was found to be conducted against the law. Such reasons must be recorded in writing before passing an order. An appeal can be filed against such an order within 30 days.
Reduced imprisonment: The penalties prescribed in the current Act are seven years imprisonment with a fine or both, whereas the new draft bill reduces the imprisonment to three years, along with a fine, or in some cases, both.
Why did the current Act need reform?
The pre-Independence Registration Act, 1908 provided for registration of various property-related documents.
Citizens needed to visit the registration office and submit documents to the Sub-Registrar for the registration process. These documents were required to be presented by persons themselves or their appointed agents.
With growing technological advancements and hassle-free methods, “several states and union territories have already introduced innovations such as online document submission and digital identity verification under the existing 1908 Act,” the MoRD says. As the role of the registered documents increased in both public and private transactions, parallel systems had to be designed to sustain the growing demands.
This necessitated an updation of the Act itself — which the Registration Bill 2025 seeks to do.
What are some concerns surrounding the Bill?
The Bill aims to digitise processes of registration, reduce the risk of title fraud, improve approval rates, and reduce disputes. However, with the maintenance of digital records, important information with regards to e-signatures will be maintained in a digital archive, which may require more robust cybersecurity systems.
The Bill may also delegate the registration functions to the Common Services Centres (CSCs). Allowing CSCs to facilitate processes that involve valuation of stamp duty, transfer of title, etc, processes that require legal implications, may create procedural gaps.
The portal for suggestions on the draft Bill remains open until June 25.