Mutation of Property in India

In India, the mutation of property plays a crucial role in establishing ownership and maintaining accurate records of land and real estate transaction.

Mutation of Property refers to the process of transferring title of ownership of a property in the official government records. It is also known as ‘Daakhil Khariji’ in Hindi.

Why is Mutation of Property Important?

The Mutation of Property is important for the following reasons:

• Legal Recognition: Mutation is essential to establish legal ownership of property. It helps in ensuring that the title records reflect the current owner and prevent any disputes regarding ownership.
• Tax Assessment: It helps local government authorities calculate property tax. The mutation entry serves as a basis for calculating and collecting property taxes from the rightful owner.
• Documentation: Mutation records provide crucial evidence for future transactions, such as sale, lease, etc. It helps in establishing a clear chain of ownership and ensures the transfer of legal rights.
• Inheritance and Succession: It is often required during the process of inheritance or succession of a property. It enables the legal transfer to the rightful heirs or beneficiaries.
• Government Perks: In the case of agricultural land, it cannot be sold without a mutation certificate. Similarly, when the government is acquiring the land, such acquisition funds will be disbursed in accordance with mutation document, i.e., to the person who is recorded as owner of the land.

Mutation of Property Vs. Registration of Property

The mutation of property often appears to be similar to registration of property. However, they are not the same. Here are the key differences between mutation and registration of property in India:

Mutation	Registration
It is the process of changing the name of the owner of the property.	It is the process of transferring the ownership of the property from one person to another.
It is documented by the Government in the revenue records maintained by them.	It is recorded in the Sub-Registrar’s office.
It does not transfer the ownership of the property.	It transfers the ownership of the property.

In essence, property registration conveys ownership of the property, whereas modifications to land records merely affect the title ownership.

Types of Mutation of Property

When it comes to the types of mutation of property, there are numerous forms with respect to agricultural and non-agricultural land available in India. These are the following ones:

Mutation through Sale Deed/Gift Deed/Transfer Deed

• If a person has bought or transferred a property in the name of another person using a transfer deed, sale deed, etc. such property can be applied for mutation.

Mutation through Inheritance

• When a person passes away, their assets are distributed to their legal heirs in accordance with the succession laws; this type of transfer is known as mutation through inheritance.
• Whenever a person passes away, their legal heirs submit an application to the appropriate authority asking them to approve the mutation. This application is submitted along with the deceased person's death certificate, an affidavit on behalf of the applicant, and information about the deceased person's legal heirs.
• If the deceased left a Will, a copy of the Will is also sent with the application in order to base the mutation on it.

Mutation through Court Decree/ Power of Attorney

• When a person is recognized by a civil court as the owner of a property or piece of land, the mutation is implemented in accordance with that court order. A copy of the affidavit and the court order must be included with the application, which will be submitted to the appropriate body.
• If ownership is transferred by a power of attorney, a copy of the document and an affidavit will be sent.

Applying for Property Mutation

The applicant must apply to the local municipal bodies of the district concerned. The procedure to apply for mutation differs from state to state. In some states, the mutation application process is online; and if not, you need to visit the office physically to apply along with the required documents.

Documents Required for Mutation Application

Following are the sets of some documents required while applying for mutation of the property:

Mutation by Sale/Transfer Deed

• Applicant’s Aadhar card,
• Applicant’s Ration card,
• Receipt of property tax payment,
• Stamp paper of the apt value,
• Sale Deed/Transfer Deed/Gift Deed,
• Registration Deed – old & new, and
• Land mutation application form – it must be duly filled up.

Mutation through Inheritance/Power of Attorney

• Title Holder’s Death Certificate,
• A copy of the Succession Certificate,
• Appropriate Affidavit on Stamp Paper,
• A copy of the Will (if available),
• Deed of Registration,
• Sale Deed,
• Aadhar Card,
• A copy of the Power of Attorney (if applicable),
• Indemnity Bond,
• Tax Clearance Papers,
• Any other relevant documents specified by the department.

Is Mutation of Property Mandatory?

Property mutation in Indian is considered nothing more than a formality when it comes to non-agricultural land and buyers of apartments and flats. As such, failing to do so does not mean you can give up your right to the property. However, mutation is mandatory for the land buyers, agricultural lands and if one wishes to sell the property in future, it becomes necessary.

Mutation Certificate Format

The certificate of mutation has no set format because each state manages its land records differently. Despite this, each mutation certificate contains significant details about the property, such as:

• Plot Number,
• Area of the land,
• District,
• Khatian/Khasra Number,
• Police Station,
• Name of the concerned party,
• Mouza number,
• The relevant authority’s signature & stamp (usually a sub-registrar).

Note: The actual information in certificates may be different depending upon the State.

Recent Supreme Court Ruling on Mutation of Property

In the recent ruling by the Supreme Court in Jitendra Singh v. State of Madhya Pradesh, the Division Bench of MR Shah and Aniruddha Bose, JJ, while upholding the High Court’s decision, reiterated that recording mutation does not confer any rights, title or interest in favor of any person. It only serves for fiscal purposes such as collecting land revenue.

Conclusion

Mutation of property is a crucial step in recording property and its transaction in India. Property owners and buyers must recognize the significance of mutation and complete the process diligently. Government authorities should continue to streamline and digitize the mutation procedure, making them more accessible, transparent and efficient.