Reforming urban land registration
India, Dec. 5 -- Peruvian economist Hernando de Soto once argued that farmers in the Indian hinterland rarely have documentation for their landholdings, a constraint that prevents them from using these as collateral for credit, or investments. But why restrict it to farmers in rural India - few people in urban India have property titles; what they have is proof of ownership (usually shown through property tax receipts) or acquisition (a registration of a transaction overseen by a government revenue official).
And what papers there are - sale deeds, inheritance or registration documents, entries in the Record of Rights - come in handwritten or drawn formats, often in tatters, leading to disputes. Of an estimated 11 million pending civil cases in India, roughly two-third concern land disputes. It is against this backdrop that the push for an overhaul of the urban property registration system becomes significant. In a follow-up to the NAKSHA programme, first mooted in the last Union budget, the Centre has now asked the states to opt for GIS-based property registration. Accordingly, precise latitude-longitude coordinates will replace the hand-drawn sketches and maps that mark the location and contours of property.
This reform is important for multiple reasons, although it needs to be recognised that in isolation, it will not completely solve all the ills that plague property transactions. One, GIS can help weed out errors in documents and bring transparency to the registration process and property ownership. Two, ease of doing business will improve when registration becomes a transparent process. Property transaction is a torturous process in India because of gaps that allow rent-seeking by intermediaries, especially public officials. Three, fewer property disputes will help unclog the legal system. The right to property is a Constitutional right, but it becomes exercisable only if the ease of possession and transaction is improved....
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