Should Land Records Be Digitised Using Blockchain for Security?
Synopsis
Key Takeaways
New Delhi, Jan 22 (NationPress) The Supreme Court has emphasized the necessity of systematic reforms to address property-related disputes and forgery. The court has proposed to the Centre and state authorities nationwide that land records and registered documents undergo digitisation through secure, tamper-proof technologies like blockchain.
This recommendation came from a bench led by Justices Rajesh Bindal and Manmohan, while adjudicating a civil appeal and reinstating a lower appellate court’s ruling that affirmed the legitimacy of a registered sale deed, dismissing allegations of it being a 'sham' transaction.
In their ruling, the Justice Bindal-headed Bench noted that technological advancements could significantly aid in maintaining the integrity of property transactions and alleviating disputes that burden our judicial system.
"Before concluding, this court finds it essential to urge the Union and state governments on the pressing need for digitising registered documents and land records through secure, tamper-proof technologies like Blockchain," stated the apex court.
The court elaborated that blockchain acts as a collective digital ledger, providing immutability and security after a transaction is recorded.
"Numerous experts assert that Blockchain, as a shared digital ledger system, guarantees that once a transaction involving a sale or mortgage is recorded, it becomes immutable and cryptographically secure," the ruling highlighted.
The Supreme Court underscored that such reforms are vital for combating forgery, falsified claims, and 'clever drafting' designed to undermine established property titles. "Such reforms are crucial to diminish the plague of forgery and 'clever drafting' that congests our judicial system," it remarked.
Emphasizing the broader governance implications, the bench pointed out that certainty in land records is pivotal for public trust. "Registered documents must instill absolute confidence to facilitate business operations and uphold the sanctity of property titles in a contemporary economy," it stated.
Concluding a protracted dispute concerning a 1971 registered sale deed, the Supreme Court overturned the Karnataka High Court’s 2010 decision and reinstated the first appellate court's judgment, rejecting the lawsuit that aimed to declare the sale deed as nominal and fraudulent.