Maharashtra government begins property e-registrations and plans to implement blockchain

7 Sep 2022 , 08:07 AM

In an effort to digitize the process that may eventually include incorporating the use of blockchain technology, the government of Maharashtra has launched the e-registration of properties to be sold by real estate developers.

Maharashtra has now enabled e-registrations of properties, making it the first state to do so. Resale transactions won’t be included in the facility at first; it will only be able to handle electronic registration of first-sale agreements.

To prevent tampering with property agreements recorded via digital means, the government intends to implement blockchain technology. This serves to verify authentic documents and safeguard both homebuyers’ and mortgage lenders’ interests.

To inform them of the shift, the government has already begun communicating with mortgage lenders and bankers, notably the Indian Bankers Association (IBA). Additionally, a blockchain technology introduction pilot project has been started.

“In Maharashtra, there are about 30 lakh property registrations every year. Of these, roughly 3-4 lakh agreements are for first-time sales, and we anticipate that shortly practically all of these deals will be completed through electronic registrations “said Shravan Hardikar, the state’s inspector general for registration and stamps.

Homebuyers who purchase properties from real estate developers no longer need to go to the stamp duty and registration office thanks to the introduction of e-registration. The state government began e-registering leave and licence agreements in 2014.

The Self Help Portal, which was created for e-registration, allows developers and homebuyers to upload their own templates for agreements, which, if authorised, can be used by developers for several similar transactions.

Additionally, the method will do away with the need for witnesses during registration. In order for physical registration to be completed, two witnesses must be present and sign.

The IGR Hardikar expects all projects and developers registered with the Maharashtra Real Estate and Regulatory Authority (MahaRERA) to come up and participate in the process, despite the fact that participation will be voluntary.

417 real estate developers have as far applied for the same. Around 4,000 sale agreements have been electronically registered, including about 1,000 by the state housing agency MHADA.

More than ten developers have already applied in Mumbai, and there are already 17 projects that are ready for e-registration.

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