Mutation of Property in India

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Madhya Pradesh, India

Property transactions in India are generally considered to be complicated owing to different local laws that might apply. They also can take time, leading to increased expense.

For these reasons, individuals residing in the UK who want to dispose of or buy a property in India are often hesitant about doing so.

However, getting the mutation of the property makes life easier. In every sale transaction, the buyer looks for a clean and undisputed title to the property he wishes to purchase. One way of ascertaining this is by checking whether the records with the local land authorities reflects this.

What is Mutation?

Mutation is the process of registering a change in the ownership of land in India. It basically refers to the transfer of, or change in, the land title entry in the revenue records of the local municipal corporation.. While, the Indian Supreme Court has recently held that in cases where there is a dispute over land title, an owner of the property cannot solely rely on mutation entries to prove that he is the owner of the property, however it is important to note that mutation continues to be an essential part of the process of selling or transferring property in India . 

Importance of Mutation

The importance of a mutation is evident from the fact that (a) it helps the relevant government authority decide who is liable to pay tax for the said property, (b) it helps to rectify the revenue records in case of a fraudulent transaction and (c) whenever the government is to pay compensation, it will check the revenue records and distribute the compensation according to the revenue records. Mutation becomes even more important in case of an agricultural land, because without a mutation, transfer of the ownership of agricultural land is not considered complete.

When should Mutation be done?

Ideally, mutation of property should be done every 6 months to check for any wrongful transaction in the property. However, one should typically get mutation done in the following scenarios:

  1. Purchase of property or
  2. Inheritance of property or
  3. Acquiring a property by way of gift

Documents required for mutation

Some documents that are generally required for mutation are:

  1. Ownership documents such as a sale deed or gift deed or any other transfer deed 
  2. Application for mutation
  3. Indemnity bond on stamp paper
  4. Last property tax payment receipt 
  5. Affidavit on stamp papers
  6. Death certificate of the last owner in case of inheritance
  7. Copy of will or succession certificate
  8. Copy of power of attorney (if any)
  9. Copy of Aadhaar Card (an identity card which serves as proof of identity and address in India) 

Procedure for Mutation

While the procedure for mutation may vary from state to state, generally the procedure is as set out below.

One needs to apply for mutation with the concerned Tehsildar (officer) of the area concerned along with a non-judicial stamp duty paper having a requisite value and the above mentioned documents. Once the application is submitted, a proclamation will be issued to see if there are any objections against the proposed mutation of property. The application is then scrutinised and if there is no discrepancy or objections to the proposed mutation, the mutation is granted/approved.

If there are any objections or discrepancies, the matter is put before the Revenue Assistant of the concerned area for a determination. If not satisfied with the Revenue Assistant’s order, the parties have an option to file an appeal before the Additional Collector within 30 days of the order.

Timeline

Depending upon where the property is situated, the timeline for obtaining a mutation may vary. Usually, assuming no objections, a mutation should be obtained within a month.

Mutation of Property for UK residents

One’s physical presence is not required in India for the process of mutation. The requisite documents could be simply handed over to a competent person authorised to represent you for the purposes of mutation.

Conclusion

As has been described above, mutation is not a complex process as it might otherwise appear to be. However, it is important to ensure mutation applications are done properly to minimise discrepancies and risk of delay or rejection.

Our full service India desk, comprising dual-qualified (India/UK) Solicitors and Advocates, will be able to assist you in that process.

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