Maharashtra government starts property e-registration, to also introduce blockchain

The Maharashtra government has started e-registration of properties to be sold by real estate developers in a bid to digitize the process which will also involve the use of blockchain technology soon.

With this, Maharashtra has become the first state to enable e-registration of properties. Initially, the facility will be enabled for e-registration of first sale agreement and resale transactions will not be a part of it.

The government plans to introduce blockchain technology to avoid tampering with property deals registered through digital mode. This is aimed at verifying or original documents and protecting the interests of home buyers and home lenders.

The government has already started interacting with bankers and credit unions, including the Indian Bankers Association (IBA) to sensitize them about the transition. A pilot project for the introduction of blockchain technology has also been initiated.

“We see around 30 lakh property registrations taking place (in Maharashtra) in a year. Of these, around 3-4 lakh deals are for the first sale and we expect almost 100% such deals to be done through e-registrations soon.” said Shravan Hardikar, Inspector General of Registration and Stamps in the state.

With the introduction of e-registration, home buyers who purchase properties from property developers do not need to visit the stamp duty and land registry offices. E-registration of leave and license agreements was started by the state government in 2014.

The portal launched for e-registration is called Self Help Portal where the developers and home buyers can upload their own template for the agreement, which once approved can be used by the developers for more such transactions.

The process will also do away with the requirement for witnesses at the time of registration. In the case of physical registration, two witnesses must be present and sign for the registration to be completed.

Although this will be a voluntary process, IGR Hardikar expects all projects and developers registered under the Maharashtra Real Estate and Regulatory Authority (MahaRERA) to come forward and join the process.

So far, 417 property developers have applied for the same. About 4,000 e-registrations of sale agreements have taken place, including about 1,000 by the state housing agency MHADA. In Mumbai too, more than 10 developers have already applied with 17 projects ready for e-registration.