In a significant move aimed at overhauling India's antiquated property transaction system, the Supreme Court has flagged critical deficiencies in the current framework and proposed the adoption of blockchain technology as a potential solution.
Colonial-Era Laws and Systemic Flaws
A bench of Justices P S Narasimha and Joymalya Bagchi, on Friday, November 8, 2025, pointed out that the existing legal architecture for property transactions is a colonial construct. The system operates primarily on three laws: the Transfer of Property Act, 1882, the Indian Stamp Act, 1899, and the Registration Act, 1908.
The court emphasized a fundamental flaw, noting that the Registration Act mandates the registration of documents, not the title to the property. This means that registering a sale deed does not guarantee ownership and is never considered conclusive proof. This systemic shortcoming places a significant burden on prospective buyers, who must undertake extensive due diligence to verify the seller's title.
Blockchain as a Path to Transparency
Highlighting the need for a modern solution, the bench suggested that adopting blockchain technology could be the way forward. The court stated that this technology would ensure immutability, transparency, and traceability in property records, thereby significantly minimizing the risk of fraud and disputes.
The current system, the judges observed, suffers from several deficiencies that undermine transparency and efficiency, creating a fertile ground for legal conflicts and complicating the process for genuine buyers and investors.
Call for a Detailed Examination
To move this proposal forward, the Supreme Court has urged the Law Commission of India to take the lead. The court has directed the commission to examine this issue in detail and to conduct widespread consultations with the Union government, state governments, and all other relevant stakeholders.
This directive sets the stage for a potential technological revolution in India's real estate sector, which has long been plagued by opaque processes and title-related litigation. A shift to a blockchain-based system could modernize property records, making transactions safer, faster, and more reliable for millions of citizens.
