India's Land Registry Revolution: How Blockchain Can Fix the System
India's land registry system has long been plagued by inefficiencies and disputes. But a new blockchain system could be the solution.
BlockchainLand RegistryIndiaReal EstateTechnologyReal Estate NewsSep 07, 2024
The Current State of Land Registry in India
India's existing land registry system is quite complex and faces many challenges. The World Bank's Ease of Doing Business Index historically ranked India relatively low in the “registering property” category due to the time-consuming and complex processes involved. At press time, India stood at the 154th position in this category.
A major concern is that many land records in India are outdated or incomplete. Some land records are still maintained using old, paper-based methods, though efforts are being made to digitize them. Many farmers can't use their land as collateral for loans due to a lack of formal titles— so they often turn to informal lenders.
Land titles in India are presumptive, meaning they can be challenged in court. This leads to many land-related disputes. A recent report also showed that property disputes accounted for 66% of all civil cases in Indian courts.
According to Transparency International, India ranked 93 out of 180 countries on the “Corruption Perceptions Index” at the time of writing. A study made by this organization a few years ago pointed out how property registration was one of the top three public services where Indians reported paying bribes.
How Will Blockchain Solve This?
Blockchain could help fix many land record problems as the inherent nature of the technology is such that once the data is recorded, it cannot be altered. This makes it hard to fake or tamper with property records. It's worth noting that everyone in the network can see and trace all transactions. As a result, it wouldn’t be possible to engage in corruption without leaving a trace.
To top this off, Smart Contracts (like automatic digital agreements) can handle many parts of land deals without needing third-party intervention.
Blockchain can also create a single digital system for all land records— bringing uniformity to data and essentially removing the bureaucratic silos. Checking a property's history and current status would be much simpler. Consequently, this can significantly reduce disputes and fraud.
Some Indian states, like Andhra Pradesh, are already experimenting with blockchain for land records. They've collaborated with Zebi (a blockchain company) on a test project. According to the State Government, this has cut land disputes in half and improved the efficiency of land transactions by nearly 30%.
Other countries have done this too, giving India good examples to learn from. Sweden started using blockchain for land in 2016. A study pointed out how this reduced paperwork and fraud and could save Sweden approximately 100 million Euros each year.
When it comes to using blockchain for land records in India, it's better to choose a platform that combines public and private parts. One good example is the LTO Network. This type of platform is suitable because it can keep sensitive information private while still being secure.
The Future of a Blockchain Registry in India
A blockchain-based land registry system could be a game-changer for India. It would make land records more transparent and trustworthy. Companies like LTO Network are already developing hybrid solutions that could help achieve this. However, switching to this new system would require extensive planning and phased implementation.
New laws and regulations would be needed to give blockchain records a ‘legal standing.’ Getting people to trust and accept this new system might be challenging at first. Despite these hurdles, the potential benefits are huge. As India becomes more digital, using blockchain for land records could be a big step forward in modernizing the country's systems.
Frequently Asked Questions
What is the current state of India's land registry system?
India's existing land registry system is complex and faces many challenges, with many land records outdated or incomplete.
How can blockchain solve the problems with India's land registry system?
Blockchain can help fix many land record problems by making it hard to fake or tamper with property records and providing a transparent and trustworthy system.
Which Indian states are already experimenting with blockchain for land records?
Andhra Pradesh is one of the Indian states that is already experimenting with blockchain for land records, in collaboration with Zebi.
What are the potential benefits of using blockchain for land records in India?
The potential benefits of using blockchain for land records in India include reduced disputes and fraud, increased transparency and trustworthiness, and improved efficiency of land transactions.
What are the challenges of implementing a blockchain-based land registry system in India?
The challenges of implementing a blockchain-based land registry system in India include the need for new laws and regulations, getting people to trust and accept the new system, and phased implementation.
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