Supreme Court Urges Blockchain for Land Records to Curb Fraud, Ease Business

The Supreme Court has suggested the Centre and states digitize land records using tamper-proof technologies like blockchain to curb property-related litigation and forgery. The court emphasized that blockchain's immutable ledger would secure transactions and reduce disputes clogging the judicial system. It highlighted that such reforms are critical to inspire public confidence and uphold the sanctity of property titles in a modern economy. The observation came while the bench restored a lower court's judgment upholding a 1971 sale deed, dismissing claims it was sham.

Key Points: SC Suggests Blockchain for Land Records to Prevent Fraud

  • Curb property litigation
  • Prevent forgery & fraud
  • Ensure immutable records
  • Boost ease of doing business
2 min read

'Immutable, cryptographically secure': SC suggests blockchain-based digitisation of land records

Supreme Court recommends blockchain digitization of land records to ensure immutability, reduce litigation, and boost confidence in property titles.

"Such reforms are essential to minimise the scourge of forgery and 'clever drafting' that clogs our judicial system. - Supreme Court"

New Delhi, Jan 22

Stressing the need for systemic reforms to curb property-related litigation and forgery, the Supreme Court has suggested to the Centre and state governments across the country that land records and registered documents be digitised using secure, tamper-proof technologies such as blockchain.

The suggestion came from a bench of Justices Rajesh Bindal and Manmohan, while allowing a civil appeal and restoring a lower appellate court's judgment that upheld the validity of a registered sale deed, rejecting claims that it was a "sham" transaction.

In its judgment, the Justice Bindal-led Bench observed that technological intervention could play a crucial role in preserving the sanctity of property transactions and reducing disputes that "clog our judicial system".

"Before parting, this court deems it necessary to suggest to the Union and state governments the urgent need for the digitisation of registered documents and land records using secure, tamper-proof technologies such as Blockchain," the apex court said.

It added that blockchain functions as a shared digital ledger, ensuring immutability and security once a transaction is recorded.

"Many experts believe that Blockchain, a shared, digital record book (ledger) system, would ensure that once a transaction of a sale or mortgage or like nature is recorded, it becomes immutable and cryptographically secured," the judgment stated.

The Supreme Court stressed that such reforms were essential to tackle forgery, fabricated claims, and "clever drafting" aimed at unsettling settled property titles. "Such reforms are essential to minimise the scourge of forgery and 'clever drafting' that clogs our judicial system," it observed.

Highlighting the broader governance impact, the bench observed that certainty in land records was critical for public confidence. "Registered documents must inspire absolute confidence to ensure the ease of doing business and to uphold the sanctity of property titles in a modern economy," it said.

Bringing an end to a long-standing dispute over a 1971 registered sale deed, the Supreme Court set aside the Karnataka High Court's 2010 ruling and restored the judgment of the first appellate court, dismissing the suit that sought to declare the sale deed as nominal and sham.

- IANS

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Reader Comments

P
Priya S
Finally! A forward-thinking idea from our judiciary. Digitising land records with blockchain will be a game-changer for 'ease of doing business' in India. It will attract more investment if property titles are crystal clear and secure. Hope the states implement this quickly.
R
Rohit P
Good suggestion in theory, but the implementation will be the real challenge. We have villages where patwaris still use paper records. The digital divide is huge. The government must first ensure robust internet and tech literacy at the grassroots level for this to work.
S
Sarah B
As someone who works in tech, I appreciate the SC understanding blockchain's potential beyond cryptocurrency. A tamper-proof ledger for land is exactly the kind of use case we need. It can save countless man-hours wasted in litigation and registry offices.
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Vikram M
My only concern is data privacy and who controls this blockchain. Will it be decentralised or government-controlled? We need strong laws to prevent misuse. Otherwise, it's a brilliant move to curb the "property dalals" and forgery mafias.
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Nisha Z
This is long overdue. So many court cases are just about land and property. If this system works, it will free up our courts for more serious matters. Hope they start with urban areas and then expand to rural. A step towards a modern India.

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