tarun banerjee (chief manager) 02 December 2010

MUTATION OF PROPERTY

A LAND IS UNDER 999 YEARS LEASE.THE OWNER OF THE LAND IS GOVT OF WEST BENGAL AND THE LEASE IS GIVEN TO ONE MR X,WHO IN TURN HAS ENTERED INTO A DEVELOPMENT AGREMENT WITH A REPUTED PROPOTER TO PROMOTE A RESIDENTIAL PROPERTY THERE. ANOTHER MR A HAS APPROACHED THE BANK FOR FINANCIAL ASSISTANCE TO PURCHASE A FALT IN THAT RESIDENTIAL COMPLEX.

1.IS IT MANDETORY FOR MR X TO MUTATE THE PROPERTY IN HIS NAME?IS IT POSSIBLE TO CREATE MORGAGE IN FAVOUR OF THE BANK ,IF THE BANK FINANCES MR. A WITHOUT THE MUTATION BEING DONE?

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3 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108) 02 December 2010

1. A leased govt. property cannot ever be Mutated, in the name of Mr. X. The leased govt. property will revert back to the W.B.Govt, after 999 years. However to develop the property for Housing purposes, Mr. X has to fulfill "Town Development" parameters, as prescribed under the State Govt laws, pertaining to the said property.

2. Mr. A can avail of bank loan, based on the development agreement between Mr. X and developer/promoter and bank should not have any objection for morgage purposes.

Keep Smiling .... Hemant Agarwal

SACHIN AGARWAL (ADVOCATE) 02 December 2010

Mr. Hemant Agarwal is right. The mutation of the name of Mr. X is not possible. The Bank can grant financial assistance without mutation of the name of Mr. X. The Bank would require the lease documents and the agreement between the Lessee and Mr. X and also an agreement between the developer and the purchaser..