India Commits ₹7,210 Crore to e-Courts Phase III: AI and Blockchain Take the Lead

In its most ambitious move yet to digitise the judiciary, the Union government has budgeted a record ₹7,210 crore for the e-Courts Phase-III project (2021–2026). Of this, ₹53.57 crore has been earmarked specifically for artificial intelligence (AI) and blockchain integration in High Courts—a clear signal that the future of judicial administration will lean on cutting-edge technologies.

The initiative promises to reinvent India’s judiciary as a digital-first institution, boosting access to justice and efficiency. Phase III is designed to fund the full range of digital court processes—from filing to final judgment—while laying the groundwork for systematic change in how courts manage data and resolve disputes.

A Decade-Long Digital Shift

The journey began in 2007 with the e-Courts Mission Mode Project. Phase I focused on basic computerisation. Phase II saw the creation of the National Judicial Data Grid and e-filing facilities.

Phase III represents the next leap: AI-driven scheduling and backlog management, blockchain-based secure digital records, and expanded virtual court infrastructure. The aim is to build a common digital platform across all levels of the judiciary, ensuring seamless compatibility between district courts, High Courts, and the Supreme Court.

This is not just about going digital—it is about becoming fully digitally transformed, where litigants, lawyers, and judges interact securely and transparently in an end-to-end ecosystem.

AI and Blockchain in the Courtroom

Though the ₹53.57 crore allocation for AI and blockchain appears small in proportion, its impact could be transformative.

AI for Judicial Efficiency could intelligently list cases, flag urgent matters, assist in legal research, and even support drafting. Judges are freed from trivial tasks by automating routine processes, reducing pendency and ensuring smoother case flow.

Blockchain for Trust and The immutable nature of blockchain ensures tamper-proof storage of court orders, evidence, and procedural records. For litigants and lawyers, this guarantees transparency and reduces the risks of data manipulation.

But these technologies will require strong supporting frameworks: digital evidence protocols, audit trails, and accountability mechanisms for AI use.

Data Privacy and Legal Implications

Digitising processes at this scale raises serious concerns around privacy and data protection. Sensitive litigation content—witness testimonies, medical records, corporate disputes—will increasingly be stored digitally.

Key considerations include:

• The Digital Personal Data Protection Act, 2023, is the backbone for safeguarding litigants’ information.

• Amendments to the Indian Evidence Act to recognise blockchain-verified records.

• The need for law firms to upgrade practice management systems to align with digital court workflows.

For practitioners, litigation strategy itself may evolve—requiring familiarity with how AI prioritises cases or how blockchain timestamps evidence.

Federal Dimensions and Implementation Challenges

Despite central funding, Phase III requires close coordination with state governments and High Courts, each with varying levels of digital preparedness. Some, like Delhi and Kerala, are relatively advanced with e-filing and video-conferencing; others still struggle with basic connectivity.

Challenges ahead include:

• Training judicial officers and lawyers across diverse legal ecosystems.

• Ensuring rural litigants, who may lack digital access, are not left behind.

• Preventing a digital divide between urban and under-resourced courts.

Without addressing these gaps, efficiency gains may inadvertently deepen access disparities.

A Step Toward Judicial Accountability?

One under-discussed consequence of e-Courts Phase III is data-driven judicial accountability. AI dashboards and blockchain-secured records could enable real-time tracking of pendency, workload, and productivity.

While this promises unprecedented transparency, it also raises questions of judicial autonomy—particularly if performance data is used for external review.

Looking Ahead: A Digital-First Judiciary by 2026?

If implemented effectively, Phase III could position India as a global leader in technology-enabled justice delivery. AI and blockchain, combined with robust digital infrastructure, hold the promise of faster case resolution, secure evidence management, and greater access to justice.

But success will hinge on inclusivity. India’s reforms often falter not from poor design, but from uneven implementation. The ₹7,210 crore budget provides a strong foundation; what remains essential is political will, judicial leadership, and sustained capacity-building.

By 2026, e-Courts could redefine not just how justice is delivered, but how it is perceived—more transparent, efficient, and citizen-centric. This is not simply a technological upgrade for lawyers, judges, or litigants, but a re-shaping of the social contract between citizens and their courts.