Mutation of property refers to the process of updating or recording the change of ownership in the land or property records of the local municipal authority or revenue department. It is commonly known as “Dakhil Kharij” in Hindi and other regional terms across India.

When a property is sold, gifted, inherited, or transferred through a Will, the new owner's name needs to be entered in the municipal or revenue records to reflect the change of title. This updated entry is called the mutation entry.

Purpose of Mutation:

• For urban properties, mutation is done in the records maintained by the local municipal corporation or municipality. It is primarily used for assessment and payment of property tax.
• For agricultural land, mutation is crucial for recording ownership in revenue records, especially for establishing the right to cultivate, receive government subsidies, or avail loan facilities.

Is Mutation Legally Required?

Legally speaking, mutation is not a document of title, meaning it does not, by itself, confer ownership. Ownership flows from the registered sale deed, gift deed, or Will, not from the mutation entry.

However, mutation is procedurally important for the following reasons:

1. For Property Tax Purposes: Mutation ensures the correct person is liable for paying municipal taxes.
2. For Agricultural Land: Mutation is vital for proving ownership before revenue authorities. Without mutation, the buyer may not be able to get their name recorded as the owner in revenue records or apply for loans or subsidies.
3. For Selling the Property in Future: Mutation establishes continuity of ownership. If mutation has not been carried out in your name, it could create legal hurdles in selling the property.
4. In Inheritance Cases: Legal heirs must apply for mutation along with a copy of the Will (if available), death certificate, and legal heir certificate or succession certificate to get their names entered in records.

Documents Required for Mutation:

• Copy of registered deed (sale/gift/partition deed)
• Affidavit and indemnity bond
• Application form for mutation
• Copy of previous mutation record or tax receipt
• Death certificate (in case of inheritance)
• Will or succession certificate (as applicable)

Legal Position:

In the case of Balwant Singh & Anr. v. Daulat Singh & Ors., the Supreme Court held that mutation entries do not confer title and are only relevant for fiscal purposes. Similarly, several High Courts have reiterated that while mutation is not conclusive proof of ownership, it serves as supporting evidence and is essential for managing public records and disputes.

Conclusion from Legal Practice:

As a judge, I advise clients to get mutation done immediately after any property transfer, even though it's not mandatory under property law for establishing title. Failure to do so may not affect ownership directly, but can result in administrative delays, legal complications, or disputes in the future. It is an essential post-transfer compliance step that supports the rightful owner's position in municipal and revenue records.