India Proposes Digital Property Registration Law to Replace 1908 Act

In a landmark move aimed at modernising India’s document registration framework, the Ministry of Rural Development released the draft Registration Bill 2025 on May 27. The bill proposes a comprehensive overhaul of the century-old Registration Act of 1908, with a public feedback window open until June 25, 2025. This draft law seeks to make property registration digital, efficient, and citizen-friendly—especially critical in the real estate sector.

A Long-Awaited Overhaul for Property Transactions

Prepared by the Department of Land Resources, the draft bill spans 43 pages, divided into 17 chapters and 86 sections. In contrast, the existing 1908 Act includes 93 sections. The new bill attempts to modernize the process of registering property documents by embracing digital infrastructure and ensuring wider legal coverage for real estate-related instruments.

Digital Shift: Registration Goes Online

One of the most notable changes introduced by the bill is the provision for complete digital registration of documents. Provisions under the bill allow for:

• Online document submission and presentation.
• Digital issuance of registration certificates.
• Electronic maintenance of records.

This shift is expected to minimise physical visits, cut paperwork, and provide convenience to stakeholders across geographies.

Optional Aadhaar-Based Authentication

The bill also introduces Aadhaar-based verification under Section 29(3), but keeps it voluntary. Individuals can opt for:

• Aadhaar e-KYC with consent.
• Offline identity verification using approved alternatives.

This ensures inclusivity for those who either don’t possess Aadhaar or prefer alternate modes of identification.

Wider Scope for Compulsory Registration

Another key update is the expansion of documents that require mandatory registration. Under Section 12(1), the bill includes:

• Gift deeds related to immovable property.
• Developer-buyer agreements and sale contracts.
• Leases exceeding one year or involving annual rent.
• Court decrees, awards, or settlements impacting property rights.
• Powers of attorney authorising transfer of property.
• Mortgage and sale certificates.
• Merger or demerger documents involving real estate assets.

This comprehensive inclusion aims to plug legal gaps and prevent disputes.

Why the Existing Law No Longer Works

The government believes the Registration Act of 1908 is out of sync with current socio-economic conditions and technological advancements. Some pressing reasons cited include:

• Rising importance of registered documents in loans, litigation, and services.
• Need for uniformity as states already adopt partial digital practices under the older law.
• Complex real estate structures requiring transparent, enforceable agreements.
• Urgency to enhance accountability and define the duties of registering officers more clearly.

Implications for India’s Real Estate Sector

If enacted, the Registration Bill 2025 will usher in a more transparent, traceable, and efficient documentation process in property transactions. The expected impacts include:

• Faster and hassle-free property registration for buyers and sellers.
• Obligation on developers to document agreements, POAs, and sales legally and transparently.
• Digital records helping reduce fraudulent transactions and property disputes.
• Elimination of grey-area deals via mandatory registration clauses.
• Boosted investor and buyer confidence owing to Aadhaar-linked verification and traceability.

Next Steps and Public Participation

The draft is currently in the consultation phase, with citizens and industry experts invited to provide feedback until June 25, 2025. The suggestions gathered will help refine the draft before it is presented to the Cabinet and, subsequently, the Parliament.

This proposed law is seen as a milestone reform aligning land governance with India’s digital aspirations, setting the tone for a transparent and modernised property registration ecosystem.

Disclaimer: This article is based on the draft Registration Bill 2025 released by the Ministry of Rural Development and is intended for informational purposes only. The final provisions may change following public consultation and legislative review.