Faults with the current land registry system
State land registry pre-dates Indian Independence which amounts to 70 years of inaction. Current system encourages rampant fraud and lengthy legal disputes (2/3 of all civil suites), delays development plans, raises land costs and crimps economic development (1.3% GDP loss each year). Powerful people hold sway and weaker sections are disadvantaged. More in link 1a.
Registering property
Transaction of property in India is complicated, full of intricacy and uncertainty. Unfortunately, even after the transfer, it is still hard to confirm whether a seller in India has title. For "lawful" transfer can be challenged by family members and those wanting their rights to specific performance (ie. I had rights to take water or walk on your lawn).
Title transfer undone by aggrieved party
Title is a chain of documents that evidence the transfer of title from previous owners to the current owner. But any one of above transactions can be set aside ("one cannot give that which he does not own") meaning the transfer is a "fraud" and can be claimed back.
Torrens System and State title guarantee
Instead of giving credence to title, Torrens system looks only at facts recorded in the land register. State guarantees the title and any proven claims by an aggrieved party can be compensated by state. Rajasthan become 1st state to guarantee title. If done across India, it can transform real estate industry.
Critical to the success is the accurate documentation of facts. But this can't happen in corrupt and malaise ridden system. Fortunately modern technology can be used to make the system temper-proof.
Blockchain
Distributed ledgers is where every user has a copy of the entire ledger of transactions. Each subsequent transaction is uploaded onto every copy of the ledger. Entries are accurately time-stamped by default. It is possible to maintain a private copy in cryptographic hash form, which allows verification without anyone able to read the data. Notarial services and escrow can be added for additional security. Blockchain method of record keeping has been done successfully in Georgia. It should be adopted by Rajasthan, followed suite by every state.
Break through with Blockchain
Zen has secured contract for Amaravati Capital Region (AP) — others like Maha and TG are interested (see link 2). It will combine Big Data Analysis & Blockchain technology to digitise land records for State govts. Big data will identify information related to the land, incl court cases. Blockchain technology secures data and prevents hacking.
State land registry pre-dates Indian Independence which amounts to 70 years of inaction. Current system encourages rampant fraud and lengthy legal disputes (2/3 of all civil suites), delays development plans, raises land costs and crimps economic development (1.3% GDP loss each year). Powerful people hold sway and weaker sections are disadvantaged. More in link 1a.
Registering property
Transaction of property in India is complicated, full of intricacy and uncertainty. Unfortunately, even after the transfer, it is still hard to confirm whether a seller in India has title. For "lawful" transfer can be challenged by family members and those wanting their rights to specific performance (ie. I had rights to take water or walk on your lawn).
Title transfer undone by aggrieved party
Title is a chain of documents that evidence the transfer of title from previous owners to the current owner. But any one of above transactions can be set aside ("one cannot give that which he does not own") meaning the transfer is a "fraud" and can be claimed back.
Torrens System and State title guarantee
Instead of giving credence to title, Torrens system looks only at facts recorded in the land register. State guarantees the title and any proven claims by an aggrieved party can be compensated by state. Rajasthan become 1st state to guarantee title. If done across India, it can transform real estate industry.
Critical to the success is the accurate documentation of facts. But this can't happen in corrupt and malaise ridden system. Fortunately modern technology can be used to make the system temper-proof.
Blockchain
Distributed ledgers is where every user has a copy of the entire ledger of transactions. Each subsequent transaction is uploaded onto every copy of the ledger. Entries are accurately time-stamped by default. It is possible to maintain a private copy in cryptographic hash form, which allows verification without anyone able to read the data. Notarial services and escrow can be added for additional security. Blockchain method of record keeping has been done successfully in Georgia. It should be adopted by Rajasthan, followed suite by every state.
Break through with Blockchain
Zen has secured contract for Amaravati Capital Region (AP) — others like Maha and TG are interested (see link 2). It will combine Big Data Analysis & Blockchain technology to digitise land records for State govts. Big data will identify information related to the land, incl court cases. Blockchain technology secures data and prevents hacking.
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2
- 1a.
Improve land registry to fight evasion
Data analytics has become a great tool for uncovering a person's access to wealth. More data is being captured but it takes smart data processing to make sense of it. For example, Govt uses 16 levels of data each suggestive of a person's incomes, investments, RE or expenditure. Data analytics can combine all this information, and perhaps even the flow of funds between related parties. One crucial input is the RE holdings. India has opaque property records and fares very poorly for registering property in Ease of Doing Business.
ET comment : ⟞ ❡ Unclear titles enable money laundering through RE deals. Need is to ensure guaranteed ownership to property holders and for this, India should adopt the Torrens system wherein land ownership is directly registered by the state. Guaranteed titles will curb sham realty deals ❡ ⟝
It's a good summary of what's required. So how are govts responding?
Updating land registry
States are updating property registers and putting them online. Aadhaar of buyer and seller of property is now required, so this must be recorded. Many states are making property title transfer much faster. Haryana is going a step ahead and offering guaranteed ownership to farmers. Rajasthan has established an independent authority to verify and guarantee land titles in cities. For this, state agencies will study land records, survey maps, transactions and court records to determine ownership. Given many challenges involved, it is expected to take 10-20 years to complete.
REPLY Jan 8, 2018 - 1b.
Govt is using Big Data Analysis to uncover hidden wealth and untaxed incomes. Likewise, data mining can uncover previous liens over the land.
REPLY Jan 8, 2018 - 2.
Blockchain revolution — Zen has a contract with AP (Amaravati Capital Region). It is in talks with Maha, TG and a few others.
REPLY Jan 8, 2018 - Without concerted efforts of States, land registration initiatives will have zero effect. States need to set up the requisite infra. Aadhaar mandate for property is a potential game-changer, is good to uncover Benami properties.
REPLY Jan 8, 2018
Benami properties : an important black money measure
☝ Real Estate is a sink for black money, facilitated by unclear titles. They contribute to artificial scarcity of urban land
✌ Benami properties aid all manner of corruption like bribing officials and politicians.
Benami properties Act (brought into force 11/2016 by NDA govt) is a great tool for government to escalate its campaign against black money.
"Benami properties are registered in the name of third parties (fictitious or otherwise), by an owner who remains anonymous. Real owner (hidden from authorities) can use these properties to hide his wealth and undeclared income.
Benami properties Act only exempts benamidaars such as a member of a Hindu Undivided Family or a trustee, and that too only if the property is funded from known sources of income.
The law says whenever a Benami property is confiscated, all rights and titles will vest with the Centre. Safeguards must make sure that this expropriatory power is used with extreme care. Government must ensure that the crackdown does not lead to undue harassment by officers.
Adjudicating authorities and an appellate tribunal will deal with Benami transactions, so all pending cases will be transferred to them."
REPLY Jan 9, 2018
Blockchain to register vehicle registration, can do much more
Tech Mahindra is working on developing blockchain technology for vehicle registration. TM said it will make vehicle registration process easier.
"Dealer can issue registration certificate and number for a vehicle using this technology. That is because dealer, Registration Authority, buyer and the finance company will get notified at the same time by the technology. Proof of Concept is ready from a technical perspective. Two Southern states have shown interest in holding pilot studies."
REPLY Jan 9, 2018
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