India’s outdated land registry system is mostly witnessed to be plagued by inefficiencies and disputes. Hence, a transformation is required and blockchain technology could be the solution. The adoption of a blockchain-based system promises to revolutionize property record management. It is said to save expenses in billions and simultaneously streamline legal disputes.
India currently ranks 154th in the World Bank’s Ease of Doing Business Index for property registration. The reason is complex and time-consuming processes. Outdated and incomplete land records are still being maintained in paper form in some regions and contribute to inefficiency. Farmers in general are suffering as they lack formal land titles. Hence, they are prevented from using the land as collateral for loans. They are therefore pushed towards informal lenders. Property titles are presumptive in the country and this makes vulnerable to legal challenges. This further paves to land disputes and currently 66% of civil cases or comprised of it.
Corruption also hinders the current system. Transparency International has ranked India to 93rd position in its Corruption Perceptions Index. Property registration is one of the top public services are bribes are commonly reported in it.
Blockchain technology offers a solution by providing an immutable and tamper-proof system for land records. Data on a blockchain cannot be altered after being recorded. Hence, it eliminates the potential for fraudulent modifications. Transactions are traceable and Smart Contracts (automated digital agreements) can simplify land deals as well as reduce the need for third-party intermediaries.
A unified digital system through blockchain would replace the fragmented and bureaucratic processes. It is to become easier to verify property history and ownership.
States like Andhra Pradesh have already begun experimenting with blockchain for land records in collaboration with blockchain company Zebi. It has reported a 50% reduction in land disputes and a 30% improvement in transaction efficiency.
Adopting a blockchain-based land registry could be a game-changer. However, it may require new laws, phased implementation and public trust. Platforms like LTO Network could gradually transition to blockchain.
