The land resources department, under the rural development ministry, has initiated a pre-legislative consultative process, inviting public suggestions on the draft 2025 Registration Bill of properties, aimed at tracking the property market comprehensively by expanding the list of documents or property transactions that must be compulsorily registered with the government.
Under the existing law, the Registration Act of 1908, only a limited set of property transactions are mandated for registration, such as sale deeds of immovable property, gift deeds, and leases longer than a year. However, many common property transactions, including agreements to sell, developer agreements, or power-of-attorney transfers, are often not formally registered with the government through contracts. This lack of registration leaves both buyers and sellers vulnerable to fraud.
Additionally, the draft Bill mandates the registration of property transfers—including land, factories, and offices—of private companies in cases of merger, de-merger, or restructuring. While these transfers are approved by courts under the Companies Act, property transfers often weren’t officially registered with the government, according to sources familiar with the matter. This oversight, people aware of the matter noted, create significant problems as land records did not accurately reflect the actual owner.
The 2025 draft Bill explicitly clarifies the scope of compulsory registration: “One of the key features of the Bill...[is] expanding the scope of compulsory registration to reflect contemporary property and transaction practices. The Bill expands the list to include agreements to sell, powers-of-attorney, sale certificates issued by competent authorities, and certain instruments based on court orders. There will be compulsory registration of documents and instruments in respect of amalgamation, reconstruction, merger, and demerger of companies and transfer of immovable property at the time of formation of companies pursuant to any order passed under the Companies Act, 2013.”
{{/usCountry}}The 2025 draft Bill explicitly clarifies the scope of compulsory registration: “One of the key features of the Bill...[is] expanding the scope of compulsory registration to reflect contemporary property and transaction practices. The Bill expands the list to include agreements to sell, powers-of-attorney, sale certificates issued by competent authorities, and certain instruments based on court orders. There will be compulsory registration of documents and instruments in respect of amalgamation, reconstruction, merger, and demerger of companies and transfer of immovable property at the time of formation of companies pursuant to any order passed under the Companies Act, 2013.”
{{/usCountry}}The Bill also introduces provisions to support online registration, including electronic presentation and admission of documents, issuance of electronic registration certificates, and digital maintenance of records.
Furthermore, the draft Bill stated: “Aadhaar-based authentication with informed consent is permitted, alongside alternative verification mechanisms for individuals who do not possess Aadhaar or choose not to use it.” The Bill also enables electronic integration with other record-keeping systems to enhance the efficiency and integrity of information flows.
A lawyer specializing in property-related disputes, who wished to remain anonymous, stated: “Agreements to sell or power-of-attorney, whether oral or with documentary evidence, are not new. What’s new is that it seems unless these are registered with the state, they will not be considered legally enforceable in property disputes. This is just old wine in a new bottle. One has to take a macro view and read the draft in conjunction with property rights granted through various surveys and the digitisation of all property records.”
The last day for the public to send its opinion on the draft Bill is June 25 after which another consultative process will begin. People in the know said that the Bill may be introduced in the monsoon session of the parliament, provided all formalities are fulfilled.