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The Supreme Court recently highlighted significant gaps in India's property registration system, noting that disputes over immovable property make up around two thirds of civil cases. It asked the Law Commission to examine blockchain technology for secure and tamper?proof land records, integrating cadastral maps, survey data, and revenue records. In a separate development, the NCLAT set aside insolvency proceedings against Mahagun India Pvt Ltd, emphasizing project-specific review and due process, which impacts thousands of homebuyers and ensures developers and lenders can address defaults fairly.
The Supreme Court has drawn attention to systemic deficiencies in India's property registration system. It observed that current laws, including the Transfer of Property Act, 1882, the Indian Stamp Act, 1899, and the Registration Act, 1908, continue to support a framework where registration confirms documents rather than absolute ownership. The court noted that a large portion of civil disputes in India relate to property, with overlapping claims often prolonging litigation. Advertisement
To address these challenges, the court asked the Law Commission of India to explore the adoption of blockchain technology. The suggested system would allow for a unified record that combines cadastral maps, survey information, and revenue records, creating a tamper-proof and transparent process for property ownership verification. Experts suggest that blockchain could provide real-time updates, reduce fraudulent transactions, and simplify property transfers.
Meanwhile, in insolvency and corporate governance matters, the NCLAT intervened in proceedings against Mahagun India Pvt Ltd. It overturned a NCLT order from earlier this year, which had admitted a petition for default on debentures worth INR 256.48 crore. The tribunal observed that Mahagun was not provided sufficient opportunity to respond with project-specific details. The NCLAT directed the NCLT to rehear the case with a focus on individual projects, preventing blanket insolvency declarations across the company's portfolio. Approximately 8,000 homebuyers are affected, and the decision ensures that both lenders and allottees have avenues to protect their interests.
Together, these developments reflect evolving judicial attention to modernizing real estate processes and safeguarding stakeholder rights. The Supreme Court's blockchain push indicates a move toward digital and secure land records, while the NCLAT decision ensures fairer insolvency processes, emphasizing due process and project-specific considerations.
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