Municipal Corporation of Delhi Mutation Procedure

Can you tell me about the Procedure for Mutation / Transfer of Property / Change of owners name in MCD or Municipal Corporation of Delhi records?

[Raman Vij]

Mutation of property means giving notice of the transfer / devolution of property to a Government Department u/s 128(5) of the DMC Act, 1957.

It can be done for Freehold and leasehold properties. If the property is freehold, the mutation has to be done in MCD. If the property is leasehold, the mutation is done in DDA or L&DO.

Procedure for Mutation / Transfer of Property / Change of owners name in MCD records:-

As per Bye Law 3 of the Taxation Miscellaneous Provisions Bye Laws, 1959, the notice regarding transfer of title required to be given under Section 128 is either in Form ‘A’ or Form ‘B’ as the case may be, and shall state clearly and correctly all the particulars required by the said form.

a) Whenever the title of any person to any land or building is transferred, both the transferor and transferee given notice of such transfer within a period of 3 months after the execution of the instrument of transfer or after registration / transfer are affected;

b) In case of death of an owner, the person on whom the title devolves give notice of such devolution within six months from the date of death of the deceased.

List of Documents required for Mutation /Sub-division -

MUTATION
(A) In case of Sale-deed:
1. Copy of Sale-deed
2. Application for mutation with Rs.3/- Court fee stamp affixed on it
3. Indemnity Bond on Rs.100/- Stamp Paper.
4. Affidavit on Rs.10/- Stamp Paper.
5. Clearance of up-to-date Property Tax.

(B) In case of Death:
1. Death Certificate
2. Copy of Will or Succession Certificate.
3. Indemnity Bond on Rs.100/- Stamp Paper.
4. Affidavit on Rs.10/- Stamp Paper duly attested by Notary.
5. Clearance of up-to-date Property tax.

(C) In case of Power of Attorney:
1. Copy of Power of Attorney.
2. Copy of Will.
3. Receipt of payment duly registered by Sub-Registrar.
4. Application for mutation with Rs.3/- Court fee stamp affixed on it
5. Indemnity Bond on Rs.100/- Stamp Paper.
6. Affidavit on Rs.10/- Stamp Paper.
7. Clearance of up-to-date Property Tax.
8

Municipal Corporation of Delhi Mutation Procedure

PROCEDURE FOR MUTATION/SUB-DIVISION OF PROPERTY
IN MUNICIPAL CORPORATION OF DELHI FOR THE PURPOSE
OF PAYMENT OF PROPERTY TAX ONLY

List of Documents required for Mutation /Sub-division -

MUTATION
(A) In case of Sale-deed:
1. Copy of Sale-deed
2. Application for mutation with Rs.3/- Court fee stamp affixed on it
3. Indemnity Bond on Rs.100/- Stamp Paper.
4. Affidavit on Rs.10/- Stamp Paper.
5. Clearance of up-to-date Property Tax.

(B) In case of Death:
1. Death Certificate
2. Copy of Will or Succession Certificate.
3. Indemnity Bond on Rs.100/- Stamp Paper.
4. Affidavit on Rs.10/- Stamp Paper duly attested by Notary.
5. Clearance of up-to-date Property tax.

(C) In case of Power of Attorney:
1. Copy of Power of Attorney.
2. Copy of Will.
3. Receipt of payment duly registered by Sub-Registrar.
4. Application for mutation with Rs.3/- Court fee stamp affixed on it
5. Indemnity Bond on Rs.100/- Stamp Paper.
6. Affidavit on Rs.10/- Stamp Paper.
7. Clearance of up-to-date Property Tax.

As per departmental Instructions on the subject, in case of death, a copy of Will or succession certificate is required to ensure that there is no malpractice in mutation cases. However, where the Assessing Officer is satisfied that there is no malpractice in the claim of mutation, the following documents may only be insisted upon for the purpose of sub-division and/or mutation in respect of such properties:

(i) Death certificate of the original assessee.
(ii) Affidavit together with No Objection Certificate from the other legal heirs of the deceased or their successors in interest.
(iii) Indemnity bond containing an undertaking of the executant that he shall indemnify the Corporation in the event of dispute arising from the mutation made upon his application.
(iv) Rough site plans showing different portions of the building and the signatures/thumb impression etc. of the persons occupying these portions.


• If entire building /plot has been sold, mutation may be allowed on payment of up-to-date dues. In case of sale by agreement to sell on
Payment of Transfer duty on prevalent rates.
• If a part of the building/plot has been sold, mutation may be allowed in the name of the purchaser on payment of up-to-date taxes for the portion purchased, Sub-division will, however, not be allowed if the sale is not through a registered document/instrument.
• In case of inheritance of a property by more than one legal heirs, mutation/sub-division in the name of all the legal heirs may be allowed subject to clearance of up to date taxes by each of them for their respective portions. However, sub-division will be allowed only if physical division exist. The case of each legal heirs has to be decided independently regardless of payment or non-payment by others for their respective portions.
• As per provisions of section 128 of DMC act, 1957 (as amended in 2003) whenever the title of any person, primarily liable for the payment of property taxes on any land or building, is transferred, the persons whose title is transferred and the person to whom the same is transferred shall give, within three-months, a notice of such transfer to MCD. The notice has to be given by the transferor as well as the transferee. If any notice under Section 126 (since repealed) is pending, the liability for the increased rate -able value after the date of transfer shall be that of the transferee. As such, the transferee should ensure that either the pending proposals are decided, additional taxes are paid by the transferor. It is, therefore, required that whenever the transferees present documents for transfer, a letter is to be issued to the transferor inviting objections, if any, in respect of the claim for mutation and consider objections received, if any, within 15 days of the issue of such letter. If no objection is received within 15 days, the property may be mutated in the name of the transferee, subject to fulfillment of other conditions.


• As and when there is death of the person primarily liable for payment of taxes, the person on whom the title of the property devolves, should within six months of the death, apply to the MCD about the devolution of the property on the legal heirs so that property mutations takes place. The person on whom the property devolves should be cautious in moving for transfer in municipal records as early as possible as there has been cases whereby some of the legal heirs got the property mutated in their names to the exclusion of others.

• The mutation in the municipal records is for the purpose of payment of property taxes and it does not mean a legal title in the name of the person in whose name the property has been mutated in the municipal records.

• Transfer Duty: Prevalent rate of transfer duty is 3% of consideration amt.
• Mutation fee: However, under the DMC (Amendment) Act, 2003, for each apportionment, fee of Rs.100/- is to be paid, along with composition fee of Rs.50/-(wherever applicable).


As per latest Departmental Instruction No.1 issued vide No.Tax/A&C/PC/SAU/2005-06/7 dated 26.4.2005, on the subject, with a view to develop mutual trust with the tax payers and the department and also in order to facilitate the early disposal of the mutation applications, it is henceforth ordered that immediately, on receipt of the application for mutation/transfer of the particular property, the applications/requests should be got scrutinized/examined by the department in accordance with the instructions earlier issued from time to time on the subject and in case, if the application, so received, is in order and all required formalities such as payment of Transfer Duty, Composition Fee and clearance of dues where-ever is required and complete, the mutation may be allowed within 15 days of the receipt of the application under intimation the applicant. Further, in case of any deficiency, a letter to the applicant must be sent within 15 days of the receipt of the application in the department and on receipt of the required information/documents called for, are submitted, the mutation case be processed further and final orders allowing the mutation are passed under intimation to the applicant within 15 days of the submission of the such documents/information.

























(SPECIMEN OF INDEMNITY BOND & AFFIDAVIT)
INDEMNITY
(on non-judicial stamp paper worth Rs.100/-)

THIS DEED OF INDEMNITY is executed at_________________ this_______________
day of ___________200____ by Shri/Smt./Kumari/M/s___________________________
s/o/w/o/d/o Shri_________________________________________aged_ _____________
resident of________________________________________________ _______________
(hereinafter called the new assessee), which expression shall always include his heirs, executors, administrators and assigns in favour of the Municipal Corporation of Delhi (hereinafter called ‘the Corporation’), which expression shall include its heirs, executors, administrators and assigns.

WHEREAS Shri/Smt./Km.M/s_______________________________________________
is the recorded owner of property bearing Municipal No.__________________________
And has been the person primarily liable for making payment of property taxes leviable under the DMC Act to the Corporation.

AND WHEREAS the said Shri/Smt/Km._______________________________________
had died on_____________________________/has transferred the said property bearing
No._______________________________________________ ____ vide Registered Deed No.___________________________dated_______________ _____ by way of sale/ perpetual lease/gift-dded/mortgage with possession/exchange of immovable property and the same New Assessee became the owner of the said property wholly/partly to the extent of ______________share therein distinctly shown in the plan submitted along with the application for mutation/sub-division.

AND WHEREEAS the New Assessee has now moved an application under Section 128 of the Delhi Municipal Corporation Act, 1957 (as amended in 2003), read with the Bye-laws made there -under for mutation/sub-division of the property referred to above, in respect of the portion of which he/she is now the owner.

AND WHEREAS pending final disposal of and decision on the aforesaid application, the Corporation has provisionally agreed to mutate/sub-divide the said premises in favour of the New Assessee for the purpose of levy/collection of property taxes (only) under the Delhi Municipal Corporation Act, 1957, on the following terms & conditions:

1. That the New Assessee shall provide to the Corporation all the relevant documents and information on the basis of which the said mutation/sub-division is claimed.

2. That the New Assessee shall also furnish a site plan of the premises distinctly showing the respective portion therein of which the New Assessee claims mutation/sub-division.
3. That the New Assessee also agrees to the revision/re-assessment of the portion of the premises of which he/she is seeking mutation/sub-division provided that the same is otherwise warranted under the Act and the Bye-laws framed there -under.

4. That the New Assessee also agrees that in case by allowing sub-division of the premises under reference if the rate -able value or any portion thereof is reduced to Rs.1000/- per annum below, the same shall be reckoned with and reasonably enhanced so as to bring the same out of the exemption limits;

5. That the New Assessee agrees to make the payment of arrears of property taxes on the existing rateable values or the rateable values that may be fixed in the pending 126 proposals or the proposals to be issued hereinafter or the demand arising on the taking of any pending increase action or due to mistake in the calculation of taxes. The New Assessee also agrees that he/she shall not agitate or object to the disposal of 126 proceedings (since repealed) already initiated against the previous owners; and

6. That the New Assessee undertakes to indemnify the Corporation against all costs, damages, losses, claims etc. which the Corporation may have to suffer, undergo or pay as a result of mutation/sub-division of the property in the name of the New Assessee.

NOW, THEREFORE, THESE PRESENT WITNESSTH:

That in pursuance of conditions hereinbefore mentioned, which the New Assessee has accepted without any condition or reservation, the New Assessee hereby agrees to indemnify and keep harmless the said Corporation against all damages, losses, claims, costs etc. which the Corporation may have to suffer, undergo, incur or pay as a result of mutation/sub-division of property bearing No.___________________________________
As per plan attached with the application for mutation.

IN WITNESS WHEREOF the New Assessee, as aforesaid, has set and subscribed his hand on these presents, on the day, month and year first above written.



(Shri/Smt.)
New Assessee

Seal of Municipal Corporation of Delhi
Signed and delivered by the within named
The New Assessee in the presence of:

____________________________________ (witness)

____________________________________ (witness)
AFFIDAVIT

I,_________________________________S/o,D/o Sh.____________________________
Resident of__________________________________________ hereby solemnly affirm and declare as under:

1. That the Property No._______________________________________________
was occupied by Shri/Smt.______________________________________________ ___.

2. That the said Shri/Smt.___________________________________________ has
expired on________________________________________________ ______________

3. That the said Shri/Smt.___________________________________________ did not leave any Will registered or unregistered.

4. That after the death of Shri/Smt.____________________________________ there are following legal heirs of the deceased:

1. Shri/Smt._____________________aged_____years, relation_________________
2. Shri/Smt._____________________aged_____years, relation_________________
3. Shri/Smt._____________________aged_____years, relation_________________
4. Shri/Smt._____________________aged_____years, relation_________________

5. That the following legal heirs out of 4 above, have no objection to the mutation of the property in the names of Shri/Smt._________________________________________
& Shri/Smt.______________________________________________ ________________
1. Shri/Smt.______________________________________________ ____________
2. Shri/Smt.______________________________________________ ____________




DEPONENT

Verification:

Verified at New Delhi, this______________ day of_______________200_________that
The contents of above affidavit are correct and true to the best of my knowledge and belief and nothing has been concealed therefrom.



DEPONENT



AFFIDAVIT

I,_____________________________________S/o, D/o Shri_______________________
resident of________________________________________________ ______________
hereby solemnly affirm and declare as under:

1. That I am one of the legal heirs of Shri/Smt.______________________________

2. That I do not have any objection if the Property No._______________________
is mutated in the names of Shri/Smt.__________________________________________
& Shri/Smt.______________________________________________ ________________


DEPONENT

Verification:

Verified at New Delhi, this___________ day of__________200_____ that the contents of above affidavit are correct and true to the best of my knowledge and belief and nothing has been concealed thereof.



DEPONENT

Please tell me the procedure of mutation in the MCD after the death of the owner who is making unregistered will