Supreme Court on Property Transactions and Blockchain Technology
The Supreme Court of India has identified several systemic deficiencies in the existing legal framework governing the purchase and sale of immovable properties, which affect transparency and efficiency.
Current Legal Framework
- The legal framework is based on three primary legislations:
- Transfer of Property Act, 1882
- Indian Stamp Act, 1899
- Registration Act, 1908
- The Registration Act mandates registration of documents but not the title itself.
- Registration of a document does not provide guaranteed ownership title, leading to burdens on prospective buyers.
Proposed Solution
- The adoption of blockchain technology is suggested to ensure:
- Immutability
- Transparency
- Traceability
- Blockchain technology could minimize fraud in property transactions.
The Supreme Court has called upon the Law Commission to examine this issue in detail, consulting with the Union, the states, and other stakeholders.