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The Supreme Court of India recently clarified in a significant order that mutation itself does not grant any property right, title or interest in favour of anyone. Mutation is merely for fiscal purposes.
Property Registration and Mutation
Property Registration - Whenever real estate changes ownership, the final agreement for sale - containing property details, current ownership, previous records and the name of the new owner, is registered with the state registrar after paying stamp duties and other charges as applicable. The process is also called conveyance. [Registrations fall under Section 17 of the Registration Act of 1908.]
Mutation - Mutation refers to the transfer or change of property title ONLY in the records of the local municipal body. This enables local bodies to identify the correct property owner so that they can charge the owner with property taxes and other levies.Why the Order Then?
Over the years, mutation certificates have become a necessary part of your property owner's kit, meaning for any official purpose (for example, taking a loan with your property as collateral) a mutation certificate and an up-to-date property tax paid receipt is mandatory.
Most property owners often flashed their mutation papers as they were easier to carry around and produce wherever needed in an instant, instead of precious and cumbersome title deeds.
The relationship between ownership and mutation started 'trending' over time and many assumed that a mutation certificate alone was enough to prove property ownership.
This meant rampant fraud, corruption and spanners in the works.
"Be that as it may, as per the settled proposition of law, mutation entry does not confer any right, title or interest in favour of the person and the mutation entry in the revenue record is only for the fiscal purpose." the bench observed.
In one phrase - increased transparency of property ownership across the country.
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Legal