On May 27, 2025, the Government of India introduced a groundbreaking draft legislation known as the Registration Bill, 2025 (“Bill”), which is set to replace the antiquated Registration Act of 1908 (“1908 Act”). This progressive initiative aims to usher land and property registration into the digital age, significantly enhancing efficiency, security, and accessibility for individuals and businesses alike.

The proposed Bill is designed to digitise the registration of property documents, thereby streamlining processes that have long been hindered by bureaucratic delays.

The 1908 Act has served as the cornerstone of India’s document registration framework, providing the legal basis for the registration of documents related to immovable property, wills, and various transactions. The 1908 Act was enacted during a time when document attestation was predominantly conducted by hand, and land records were primarily maintained in physical formats. As society has progressed, the reliance on registered documents for due diligence, service delivery, and legal adjudication has significantly increased. These documents have become essential for transactions, often serving as the cornerstone for critical financial, administrative, and legal decisions.

In the current landscape, there is a burgeoning demand for online services, with businesses seeking swift and reliable access to records. Technological advancements offer opportunities to mitigate fraud and enhance the efficiency of registration processes. The growing integration of digital technologies, alongside evolving socio-economic practices, has underscored the urgent need for a modernized registration framework that is responsive to the demands of the digital age.

According to the Constitution of India, the subject of “Registration of deeds and documents” is classified as a concurrent subject, as specified in Entry No. 6 of List III (Concurrent List) of Schedule VII. This constitutional provision empowers both the central and state governments to legislate on this matter. In response to this framework, several states and union territories have proactively introduced amendments and innovations to the existing 1908 Act. For example, certain states have redefined the term ‘conveyance’ to include electronic conveyance, while others have implemented e-stamping systems. Additionally, states including Maharashtra, Karnataka, and Madhya Pradesh have established “anywhere registration” systems, allowing documents to be registered at any Sub-Registrar office within the state, regardless of the property’s location.

Despite these advancements, the lack of uniformity across states presents significant challenges. It is imperative that the registration process be standardised, strengthened, and made reliable, ensuring it can adapt to the ongoing evolution of societal needs and technological developments. A cohesive and robust registration framework will not only enhance the integrity of property transactions but also foster greater public confidence in the legal system.

Once enacted, the Bill will not only replace the outdated Registration Act but also establish a new standard for property registration in India, paving the way for a more transparent, secure, and user-friendly system. As we stand on the brink of this digital transformation, the Bill promises to redefine the landscape of property rights and transactions in India, marking a significant step towards a more efficient future.

Key Features and Implications of the Bill 2025

A New Era in Document Management

The Draft Registration Bill, 2025, heralds a significant shift towards a fully digital registration process, revolutionizing the way documents are registered in India. The proposed legislation aims to replace the outdated Registration Act of 1908 with a modern, online-first, and citizen-centric legal framework. It introduces comprehensive digital reforms, enabling the submission, verification, and registration of property documents entirely online. This approach is a natural evolution of pre-existing initiatives like the National Generic Document Registration System (NGDRS), a configurable online platform already implemented in many states to streamline property registration and stamp duty payments.

The Bill’s provisions build on this digital foundation, allowing for a seamless transition from traditional methods to a more efficient digital framework. Under the new Bill, the entire process—from the presentation of documents to their admission—can be conducted online, streamlining what has historically been a cumbersome procedure. It is the responsibility of the registering officer to issue electronic registration certificates and maintain comprehensive digital records, ensuring that all information is readily accessible and securely stored.

Moreover, the Bill promotes electronic integration with various record-keeping systems, thereby enhancing the efficiency and integrity of information flows across different platforms. This integration not only simplifies the registration process but also fortifies the reliability of the data, reducing the potential for errors and fraud.

• Online Submission: The Bill facilitates the electronic presentation and submission of property-related documents through a dedicated online portal. This innovation significantly reduces the necessity for physical visits to registration offices, streamlining the process and saving valuable time for all parties involved.

• E-Certificates and Digital Archives: Upon successful registration, parties will receive electronic registration certificates, ensuring immediate access to their documentation. Furthermore, all registered documents will be digitally archived, allowing for easy retrieval, sharing, and verification, thereby enhancing transparency and trust in the registration process.

• Electronic Signatures and Biometrics: The Bill empowers the use of electronic signatures, biometric thumb impressions, and passport-sized photographs for identification purposes. This advancement not only simplifies the registration process but also enhances the evidentiary value of registered documents, providing a robust framework for legal validation.

• Aadhaar-Based Identity Verification (with Alternatives): A key feature of the Bill is the proposed use of Aadhaar authentication for identity verification of parties involved in transactions, utilizing either One-Time Password (OTP) or biometric verification methods. Importantly, the Bill also accommodates alternative identification methods, ensuring inclusivity for individuals who may not possess an Aadhaar number or prefer not to use it.

A Modernised Organisational Framework: Embracing a Citizen-Centric Approach

• Revamped Registration Hierarchy: The Bill proposes significant modifications to the existing registration hierarchy, including the establishment of one or more Additional and Assistant Inspectors General of Registration, as well as Joint or Deputy Inspectors General under Section 4. This strategic enhancement is designed to create a more agile and responsive registration system, ensuring that administrative processes are streamlined and capable of addressing the evolving needs of the public.

• Promotion of Plain Language and Digital Enablement: A cornerstone of the Bill is its commitment to promoting plain language drafting and digital enablement. By simplifying legal terminology and procedures, the Bill aims to make the registration process more accessible, particularly for individual citizens and small businesses. This initiative not only demystifies the registration process but also empowers users to navigate it with greater confidence and ease.

• Flexibility for Physical Appearances: While the Bill primarily advocates for a digital registration framework, it recognises the necessity of human interaction in specific circumstances. Therefore, it permits physical appearances before a registering officer when public interest or fraud prevention is at stake. This provision ensures that the system remains adaptable and responsive, safeguarding against potential abuses while maintaining the integrity and efficiency of the registration process.

Expanded Scope of Compulsorily Registerable Instruments:

The 2025 introduces significant enhancements to the framework governing the registration of documents, particularly through Section 12, which broadens the categories of instruments that are now mandatorily subject to registration. This expansion aims to eliminate ambiguity and ensure greater clarity in the registration process, thereby reinforcing the integrity of property transactions.

The Bill now mandates the registration of the following categories of documents:

• Agreements for Sale: All agreements pertaining to the sale of property must be registered, ensuring that the terms of such agreements are formally recognized and enforceable.

• Developer’s and Promoter’s Agreements: Any agreement, regardless of its nomenclature, related to the development of property or the construction of structures is now required to be registered, thereby safeguarding the interests of all parties involved.

• Power of Attorney (POA): The Bill now explicitly mandates the registration of Powers of Attorney (PoAs) that authorize the transfer of immovable property. This addresses the long-standing ambiguity in the 1908 Act and aligns with judicial precedents. The Supreme Court, in Suraj Lamp & Industries (P) Ltd. vs. State of Haryana (2011), clarified that a PoA alone does not transfer property title, while in Asset Reconstruction Company (India) Limited v. S.P. Velayutham & Ors., it distinguished between authentication and registration. Despite these rulings, registrars often insisted on registered PoAs. By making registration compulsory, the Bill rectifies this inconsistency, ensuring a legally verifiable record and providing clarity to property transfers.

• Mortgage Documents: The Bill now includes instruments outlining the terms of mortgages created by the deposit of title deeds as registrable documents, enhancing transparency. This aligns with legal precedent, as seen in the case of Gurdial Singh v. Kartar Singh. The court held that a receipt for the full payment of a mortgage, when it also mentions the extinction of the mortgage, requires registration. These rulings underscore the importance of formally recording documents related to mortgage payments to ensure legal clarity, a principle now extended to mortgages by deposit of title deeds under the new Bill.

• Sale Certificates and Corporate Instruments: The Bill mandates the registration of sale certificates and corporate instruments, such as those from mergers and amalgamations, when they involve property transfers under the Companies Act, 2013. A sale certificate is not a conveyance deed; it does not transfer title but rather serves as evidence of the title already vested in the purchaser. Stamp duty is applicable only if this certificate is presented for registration or for other official purposes. This new provision ensures a formal record of property transfers arising from corporate arrangements, enhancing transparency and legal certainty.

• Court Orders and Awards: Instruments that create, limit, or extinguish any right, title, or interest in immovable property as a result of a court decree, order, or award are also subject to mandatory registration, thereby reinforcing the legal standing of such instruments.

• Adoption Instruments: In a progressive move, the Bill expands the scope of registrable instruments to include authorities for the adoption of daughters, which were previously limited to the adoption of sons under the 1908 Act. This inclusive approach reflects a commitment to gender equality in legal recognition.

Section 13 of the Bill, 2025, simplifies the registration process by stating that any document not mandated for registration under Section 12 may still be optionally registered under the Act. This broad language replaces the previous, more specific list of documents whose registration was optional under Section 18 of the old Act. The new provision provides a general rule, allowing for the optional registration of any document not covered by the compulsory registration requirements of Section 12.

While the Bill empowers individuals to voluntarily register documents for enhanced legal certainty and evidentiary strength, this flexibility is especially significant in light of judicial precedents. The Supreme Court’s ruling in Narinder Singh Rao v. Air Vice Marshall Mahinder Singh Rao (2013) highlighted the importance of registration for certain documents, even when not compulsory. In that case, the court held that while a Will must be attested by two witnesses to be valid, the transfer of property through the Will is only considered a valid transfer if the Will is registered, underscoring the practical benefits of voluntary registration for establishing a formal record and avoiding future disputes.

Structured Bookkeeping for Mortgages by Deposit of Title Deeds: Enhancing Transparency and Legal Certainty

The Draft Registration Bill, 2025, mandates that all financial institutions and creditors extending loans secured by the deposit of title deeds must file a copy of such deeds with the registering officer. This provision aims to create a structured bookkeeping system to enhance the integrity of property transactions. Under the old Transfer of Property Act, 1882, all mortgages except those by deposit of title deeds required registration if the principal amount was one hundred rupees or more. Mortgages by deposit of title deeds were previously not required to be registered, which is the key reform addressed by this bill. This new rule will help to prevent fraud and improve the transparency of such transactions.

Furthermore, the Bill introduces a significant legal safeguard: any mortgage filed and recorded under Section 14(3) will take precedence over any subsequent mortgage or transfer related to the same property. This principle is rooted in the legal maxim qui prior tempore potior est jure, which translates to “he who is first in time is better in law.” This provision ensures that the rights of the initial mortgagee are protected, thereby reinforcing the order of priority in property transactions.

The requirement for financial institutions and creditors to file title deeds with the registering officer serves multiple purposes. Firstly, it enhances transparency in the mortgage process, allowing for a clear and accessible record of encumbrances on a property. This transparency significantly reduces the risk of fraudulent activities and the occurrence of multiple encumbrances on the same asset, which can lead to legal disputes and financial losses.

Moreover, by strengthening the legal sanctity and evidentiary value of recorded transactions, this provision facilitates smoother enforcement of mortgage rights and provides a more straightforward mechanism for fact-finding in the event of disputes. In essence, the structured bookkeeping mandated by the Bill not only protects the interests of lenders but also promotes a more secure and reliable property market, ultimately benefiting all stakeholders involved.

Special Provisions Relating to Wills: Streamlining the Registration Process

Chapter XI of the Bill introduces significant reforms aimed at simplifying the registration of wills, thereby reducing delays and enhancing accessibility for individuals seeking to formalize their testamentary intentions. This chapter is particularly beneficial for elderly citizens and those who urgently need to complete their estate planning.

• Electronic Registration Options: Section 45 of the Bill empowers individuals to register their wills electronically, a modern approach that facilitates a more efficient and user-friendly process. This innovation is designed to accommodate the needs of those who may face challenges in navigating traditional registration methods, ensuring that their testamentary documents can be formalised swiftly and securely.

• Flexible Presentation and Deposit of Wills: The Bill retains provisions from the 1908 Act, allowing wills to be presented or deposited at any time, either in person or through authorised agents, as outlined in Sections 44 to 47. This flexibility ensures that individuals can choose the method that best suits their circumstances, thereby promoting greater accessibility to the registration process.

• Sealed Deposits for Enhanced Security: A notable feature of the Bill is the option to deposit wills in a sealed cover with the Registrar, as specified in Section 47. This provision offers a secure mechanism for safeguarding testamentary intentions, significantly reducing the risk of loss, tampering, or unauthorised alterations. By ensuring that wills are protected until they are needed, this measure enhances the integrity of the testamentary process.

Rectification of Errors, Re-registration, and Cancellation: A Landmark Reform in Property Registration

The Bill introduces a groundbreaking framework for the rectification of errors, re-registration, and cancellation of registrations, marking a significant advancement in the property registration process. This reform is designed to enhance the integrity and reliability of the registration system while safeguarding the rights of rightful claimants.

• Rectification of Errors (Section 57): For the first time, the Bill allows for the rectification of errors in registered documents. If a document has been registered by an individual lacking the legal authority to do so, the rightful claimants—armed with a legally valid document—are permitted to present the corrected document for registration. This provision ensures that procedural lapses do not undermine the substantive rights of individuals, thereby upholding the integrity and enforceability of legitimate transactions.

• Empowerment of the Adjudicating Authority: The Bill establishes a designated ‘Adjudicating Authority’ with the power to cancel registrations obtained through fraudulent means or in contravention of the law. This authority operates under a framework of appellate oversight, ensuring that decisions are made fairly and transparently. However, it is important to note that questions of title or ownership have been expressly excluded from the registrar’s jurisdiction, which may lead to potential overlaps or conflicts with the jurisdiction of civil courts.

• Timely Re-registration: The Bill stipulates that any document presented for re-registration must be submitted within four months from the date the error first came to the applicant’s knowledge. To enhance clarity, it is suggested that the Bill specify the criteria for determining when the applicant has bona fide knowledge of the error. Additionally, mandating the issuance of a public notice with every transfer instrument could invite claims on the property before the transfer is executed, further protecting the interests of all parties involved.

• Methodology for Record-Keeping: To ensure proper management of registered documents, the Bill should also outline a comprehensive methodology for bookkeeping, including the destruction of erroneous instruments and the maintenance of accurate records. This will facilitate transparency and accountability in the registration process, allowing for efficient tracking of all registered documents.

Appeal Provisions: Ensuring Fairness in Registration Decisions

The Draft Registration Bill incorporates a crucial appeal provision designed to uphold the principles of fairness and accountability in the registration process. Under Section 60 of the Bill, if a Sub-Registrar refuses or denies the registration of a document on any grounds other than the denial of execution, the aggrieved party has the right to file an appeal to the Registrar to whom the Sub-Registrar is subordinate. This provision, carried forward from Section 72 of the 1908 Act, ensures that individuals have a recourse to challenge decisions that may adversely affect their rights and interests, thereby promoting transparency and justice in the registration system.

Penalty Provisions: A Shift Towards Proportionality

The Bill also revises the penalty provisions established under the Registration Act of 1908. Previously, the Act stipulated severe penalties, including imprisonment for a term extendable to seven years, or fines, or both. However, the Draft Registration Bill introduces a more proportionate approach to penalties, reducing the maximum term of imprisonment to three years, along with the possibility of fines or both. This shift reflects a commitment to ensuring that penalties are commensurate with the nature of the offense, thereby fostering a more balanced legal framework that encourages compliance while still holding individuals accountable for violations.

Introduction of Schedules: Enhancing Clarity and Structure

In a further effort to enhance the clarity and structure of the registration process, the Bill introduces two distinct schedules: Part A and Part B.

• Schedule Part A outlines the particulars that must be contained in the books maintained under Section 66. This schedule provides a comprehensive framework for record-keeping, ensuring that all necessary information is systematically documented and easily accessible.

• Schedule Part B delineates the forms and particulars to be included in the indexes maintained under Section 67. By establishing clear guidelines for the maintenance of indexes, this schedule promotes consistency and efficiency in the registration process, facilitating easier retrieval of information and enhancing overall transparency.

Conclusion

The Bill marks a pivotal advancement in establishing a modern, digital, and business-friendly registration regime in India. This comprehensive legislation is meticulously designed to enhance efficiency, transparency, and legal certainty, delivering direct benefits to businesses by alleviating compliance burdens, mitigating risks, and facilitating smoother commercial transactions.

At the heart of the Bill is a commitment to promoting online registration and digital record-keeping. By significantly reducing paperwork, minimizing physical visits, and expediting processing times, the Bill streamlines compliance for businesses operating in India.

 The electronic integration with other critical databases, such as land records and corporate registries, enables quicker due diligence and verification processes, thereby simplifying property and asset transactions. Furthermore, the expansion of compulsory registration, coupled with clearly defined grounds for refusal or cancellation, bolsters the legal validity and reliability of registered documents, effectively reducing the risk of disputes and fraudulent activities. The introduction of objective criteria for registration and cancellation serves to minimize discretionary power, thereby curbing potential corruption.

Once enacted, the Bill is poised to become a cornerstone reform that supports India’s ambition to enhance its business environment and digital governance. It seeks to empower local governance by delegating rule-making authority to appropriate state governments, allowing for the development of state-specific regulations and innovations, provided they are uniformly implemented.

The Bill emphasises the importance of clear and concise drafting, aligning with best practices in communication to ensure that the general public can easily understand its provisions.

In its pursuit of facilitating the ‘Ease of Doing Business’ through digitization, the Bill adopts a citizen-centric approach, as highlighted in accompanying press releases. This approach aims to reduce unnecessary delays by enabling real-time tracking and standardization of documents, thereby enhancing the overall user experience.

Stakeholders such as real estate developers, banks, lawyers, and other relevant parties will need to familiarize themselves with the new law and align their documentation formats with the prescribed templates. Notably, the Bill mandates the registration of mortgage documentation involving equitable mortgages, which may impact turnaround times and existing credit disbursement protocols.

The introduction of this new legal framework is expected to result in a surge in compliance and advisory roles for legal professionals, particularly in areas such as aligned drafting, execution of powers of attorney, and litigation concerning refused registrations or cancellations.

To ensure the successful implementation of the Bill, various governmental departments will require adequate and ongoing coordination, particularly among municipal, revenue, and registrar offices, as stipulated in the legislation. Additionally, the recruitment of qualified personnel, coupled with rigorous training for governmental authorities and staff, will be imperative to transition away from the century-old practices established under the 1908 Act.

In conclusion, the Bill represents a transformative leap towards a more efficient, transparent, and user-friendly registration system in India. By embracing digital solutions and empowering local governance, this Bill not only aims to enhance the business landscape but also fosters a more inclusive and accessible legal framework for all stakeholders involved.