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REGISTERING PROPERTY QUESTIONNAIRE Mumbai www.doingbusiness.org Dear Contributor, We would like to thank you for your participation in the Doing Business project. Your expertise in the area of Registering Property in Mumbai is essential to the success of the Doing Business report, one of the flagship publications of the World Bank Group that benchmarks business regulations in 190 economies worldwide. The Registering Property indicator, which measures the quality and efficiency of land administration, is one of the 11 indicator sets published by the Doing Business report. The report attracts much attention around the world. The latest edition, Doing Business 2017: Equal Opportunity for All, introduced improvements in the Paying Taxes and Protecting Minority Investors indicators, and included a gender component in 3 of 11 Doing Business indicator sets. It received over 7,000 media citations within just a week of its publication on October 25, 2016 and the report was downloaded almost 40,000 times within that same period. A record 137 economies implemented a total of 283 reforms. Low and middle income countries carried out more than 75% of these reforms, with Sub-Saharan Africa accounting for 80 of them. Governments worldwide read the report with interest every year, and your contribution makes it possible for the Doing Business project to disseminate the regulatory best practices that continue to inspire their regulatory reform efforts. Since 2010, 101 economies have implemented 157 reforms making it easier to transfer property. In 2015/16, 22 economies implemented reforms such as digitizing land records, integrating electronic platforms, introducing expedited procedures and improving the reliability and transparency of the land administration system. We are honored to be able to count on your expertise for Doing Business 2018. Please do the following in completing the questionnaire: Review the assumptions of the case study before updating last year’s information in the questionnaire. Describe in detail any reform that has affected the process of transferring a property since June 1, 2016. Please pay special attention to the questions on the overall quality of the land administration systems and to the research questions at the end of the questionnaire. Be sure to update your name and address if necessary, so that we can mail you a complimentary copy of the report. Kindly return the questionnaire to [email protected]. We thank you again for your invaluable contribution to the work of the World Bank Group. Sincerely, Ms. Laura Diniz Mr. Albert Nogues Comas Mr. Yuriy Avramov Tel: +60 32263-4920 Tel: +1 202 473-8374 Tel: +1 202 458 0530 Fax: (202) 473-5758 Fax: (202) 473-5758 Fax: (202) 473-5758 Email: [email protected]

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Page 1: REGISTERING PROPERTY QUESTIONNAIRE Mumbai · REGISTERING PROPERTY QUESTIONNAIRE – Mumbai ... () Any dispute related to land will be adjudicated within a year as per

REGISTERING PROPERTY QUESTIONNAIRE – Mumbai www.doingbusiness.org

Dear Contributor, We would like to thank you for your participation in the Doing Business project. Your expertise in the area of Registering Property in Mumbai is essential to the success of the Doing Business report, one of the flagship publications of the World Bank Group that benchmarks business regulations in 190 economies worldwide. The Registering Property indicator, which measures the quality and efficiency of land administration, is one of the 11 indicator sets published by the Doing Business report. The report attracts much attention around the world. The latest edition, Doing Business 2017: Equal Opportunity for All, introduced improvements in the Paying Taxes and Protecting Minority Investors indicators, and included a gender component in 3 of 11 Doing Business indicator sets. It received over 7,000 media citations within just a week of its publication on October 25, 2016 and the report was downloaded almost 40,000 times within that same period. A record 137 economies implemented a total of 283 reforms. Low and middle income countries carried out more than 75% of these reforms, with Sub-Saharan Africa accounting for 80 of them. Governments worldwide read the report with interest every year, and your contribution makes it possible for the Doing Business project to disseminate the regulatory best practices that continue to inspire their regulatory reform efforts. Since 2010, 101 economies have implemented 157 reforms making it easier to transfer property. In 2015/16, 22 economies implemented reforms such as digitizing land records, integrating electronic platforms, introducing expedited procedures and improving the reliability and transparency of the land administration system. We are honored to be able to count on your expertise for Doing Business 2018. Please do the following in completing the questionnaire:

Review the assumptions of the case study before updating last year’s information in the questionnaire.

Describe in detail any reform that has affected the process of transferring a property since June 1, 2016.

Please pay special attention to the questions on the overall quality of the land administration systems and to the research questions at the end of the questionnaire.

Be sure to update your name and address if necessary, so that we can mail you a complimentary copy of the report.

Kindly return the questionnaire to [email protected].

We thank you again for your invaluable contribution to the work of the World Bank Group.

Sincerely, Ms. Laura Diniz Mr. Albert Nogues Comas Mr. Yuriy Avramov Tel: +60 32263-4920 Tel: +1 202 473-8374 Tel: +1 202 458 0530 Fax: (202) 473-5758 Fax: (202) 473-5758 Fax: (202) 473-5758 Email: [email protected]

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2

Primary Contributor Information: Please check the box next to information you do not want us to publish.

Name

Title (Mr., Ms., Dr.) [ Mr. ]

Do not publish First Name Last Name

Contributor

[ Shailendra ] [ Singh ]

Never Published

Position (e.g. manager, associate, partner)

[ Joint Secretary ]

Profession (e.g. judge, lawyer, architect)

[ ]

Contact details

Do not publish

Firm name [Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India ]

Website [ http://dipp.nic.in/ ]

Do not publish E-mail address [[email protected] ]

Do not publish Phone [ 011-23061637 ]

Never Published Fax [ ]

Mobile phone [ ]

Do not publish Firm Address

Street [ Udyog Bhavan, Rafi Ahmed Kidwai Marg, Rajpath Area ]

P.O. Box [ ]

City [ New Delhi ]

State/ Province [ Delhi ]

Zip/Postal code [110117 ] Country [ India ]

7 IND 385

Additional Contributor(s): If there are more people whom you would like us to acknowledge, kindly send us an e-mail.

Name Occupation Email Phone Address

[title] [first name] [last name]

[firm] [position] [profession]

[ ] [phone] [mobile]

[street] [state/province] [city/country]

[title] [first name] [last name]

[firm] [position] [profession]

[ ] [phone] [mobile]

[street] [state/province] [city/country]

[title] [first name] [last name]

[firm] [position] [profession]

[ ] [phone] [mobile]

[street] [state/province] [city/country]

Paperless Option for Complimentary Report and Certificate Last year contributors saved nearly half a million pieces of paper by selecting the paperless report option. We welcome you to join us in conserving resources:

Please e-mail me an electronic copy of the report and my certificate of appreciation, rather than mailing me a paper copy. Referrals: Please help us expand our list of contributors by referring us to other experts in the private or public sector (lawyers, notaries, public officials or any expert in this field) who can respond to the questionnaire.

First name Last name Position Firm Address Phone E-mail

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[ ] [ ] [ ] [ ] [ ] [ ] [ ]

[ ] [ ] [ ] [ ] [ ] [ ] [ ]

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1. CASE STUDY ASSUMPTIONS The Registering Property indicator records the full sequence of procedures necessary for a business to purchase a property from another business and to transfer the property title to the buyer's name. In addition, it measures the overall quality of the land administration systems. In order to assess the time, cost and number of procedures required to complete the process of property transfer, a specific set of assumptions needs to be considered. 1.1 Scenario You are helping your client, a limited liability company, purchase a commercial warehouse that is registered at the Sub-Registrar office in Mumbai. This case is a transfer of property, not the first-time registration of a property.

Assumptions

Parties • The buyer and seller are local limited liability companies located in Mumbai. • They are owned by private nationals (with no foreign or state ownership) and perform general commercial activities.

Property

• The property consists of land and a 2-story building (warehouse): the land area is 557.4 square meters (6,000 square feet), and the warehouse has a total area of 929 square meters (10,000 square feet). • The value of the property is INR 5,114,479 (equivalent to USD 79,500), equal to 50 times income per capita. • The property is registered in the land registry; it is free of title disputes and has no mortgages attached to it. • The seller company has owned the property for the past 10 years.

Transaction • The seller company has accepted the buyer company's offer to purchase the property. • The parties will undertake every procedure that is officially required or needed in practice to transfer the ownership of the property.

1.2 Definitions The questionnaire divides the process for transferring a property into distinct procedures and collects information on the time and cost of completing each procedure according to the following definitions:

Definitions

Procedures • A procedure is an interaction of the buyer or the seller, their agents (if an agent is legally or in practice required) with external parties, including government agencies, inspectors, notaries and lawyers. • Procedures that take place simultaneously are marked with an asterisk (*).

Time

• Time is measured in calendar days. • The minimum time for a procedure is 1 day. • For procedures that can be completed online in less than 1 day, the duration is noted as ―Less than one day (online procedure).‖

Cost • Cost reflects only official fees and taxes; bribes are excluded. • Value added tax (VAT) and capital gains should not be included in the cost.

Please always refer to the case study assumptions and definitions when describing the property transfer process.

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2. REFORM UPDATE 2.1 Has there been any administrative or legal change since June 1, 2016 affecting the process for transferring a property or the land administration system? Yes

IF YES:

2.1.1 Please indicate the name and date of the law or regulation:

2.1.2 Please provide the link to the law or regulation if possible:

2.1.3 Please describe the administrative or legal change:

All land parcel maps are already surveyed as a part of City Survey under section 122 and section 126 of Maharashtra Land Revenue

Code (MLRC) 1966 and property cards (RoR) are present in Digital form for all privately held land plots.

The Land Records related grievances are reported through "Aaple

Sarkar" portal and Service delivery standards are specified as a part of Right to Service Act and have been rolled out at

https://aaplesarkar.maharashtra.gov.in/en/

Year-wise historical statement for number of property deeds registered and revenue collected are available at

http://igrmaharashtra.gov.in/pdf/Statistic.pdf

Land dispute information is availble online through e-DISNIC (www.eDisnic.gov.in)

Any dispute related to land will be adjudicated within a year as per

aendment made by Gazette Notification no. 24(3) dated 11/04/2016 (Maharashtra Act No. XI of 2016).

Citizens can review the property details using eSearch facility

https://esearchigr.maharashtra.gov.in/testingesearch/Login.aspx

Citizens can carry out data entry in the system for property registration before going to the Sub-Registrar office using the

Public Data Entry portal https://efilingigr.maharashtra.gov.in/PDEefiling/frmPublicLogin.aspx

Citizens can also seek appointment and re-appointment for deed

registration using the eStepIn system http://igrmaharashtra.gov.in/TokenBooking/tokenbook.aspx

Registration Act has been amended with insertion of Section 89

A, according to which, every court shall send copies of order affecting any immovable property and every recovery officer shall send copies of order or interim order attaching or releasing any

immovable property to the concerned Sub-Registrar (https://indiankanoon.org/doc/169968/)

Real Estate (Regulation & Development) Act, 2016 has provision of

title insurance (http://www.indiacode.nic.in/acts-in-pdf/2016/201616.pdf)

2.1.4 Has this change simplified or complicated your daily work related to property transfers? Please explain:

Change has signigicantly eased the property registration process in Mumbai as, the seller and buyer can now ONLINE apply for deed registration, book appointments, access scanned/digitized land records available in public domain, pay stamp duty and even

register grievances online.

2.2 Last year Doing Business recorded the following project that was expected to have an impact on the property transfer process or the land administration system (if no information is shown here, please go to question 2.3):

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Expected reforms Is it now in place? If yes, since when? Is the transfer

process now easier or more complex?

Please explain:

No expected reforms -Click to Select- -Click to Select-

2.3 Are you aware of any reform (change in practice or in laws or regulations) related to the process for transferring a property or the land administration system that is ongoing:

Please describe

2.3.1. BEFORE June 1, 2017? -Click to Select-

2.3.2. AFTER June 1, 2017? No

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3. LIST OF PROCEDURES FOR TRANSFERRING PROPERTY For your convenience, last year’s answers are included in this questionnaire. They represent a unified response, based on all the answers received from various contributors. Because they represent the responses from all Doing Business contributors in your economy, they may not match the specific answers that you or your colleagues in your firm provided last year. Please update the data for property transfers taking into account the assumptions of the case study presented in section 1. Please describe any change to the data in detail and indicate since when the change took effect. Please specify whether the changes you make are because of:

A reform — any modification to the property transfer process (in practice or in law) after June 1, 2016;

A correction— meaning that the unified answer was erroneous and did not reflect the reality in your country;

Other—relating to other external factors affecting the property transfer process.

3.1 Data Update

Procedure 1 Conduct a title search at the office of Sub-Registrar of Assurance

Cost

Cost last year: INR 15,000-20,000

Cost update: Search fees is Rs. 300

Time

Time last year: 7 days (simultaneous with procedures 2 and 3)

Time update: 0.5 days (procedure is completely online)

Online procedure

Can it be completed online? No If yes, since when?

Website:

Update: Yes Update: Since 2015

Link update: https://esearchigr.maharashtra.gov.in/testingesearch/Login.aspx

Agency

Agency last year: Sub-Registrar of Assurance

Agency update:

Procedure details:

Details: The purchaser should conduct a search of the property in the Registry and the Revenue Office, noting the location details of the property and the time period to be checked. While investigating the title it should be verified. (1) the legal ownership document (i.e. the title document) is in the name of the owner and is duly stamped and registered before the concerned sub-registrar of assurances. (2) that on the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase, (3) the property is transferable and heritable, (4) the transferor is competent and/or authorized to transfer the property, (5) the transferee is qualified to be a transferee, (6) the object or consideration for the transfer is lawful, (7) the transfer has been made and completed in the manner prescribed by law. Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be checked. If the seller is a Company incorporated under the provisions of the Companies Act, 2013 then it is prudent to take search in the office of the Registrar of Companies to verify whether there is any charge on the property registered under the provisions of Section 81 of the Companies Act, 2013.

Your comments:

If you made changes to last year’s information, what is it due to? Correction

Please explain the change(s) and provide the legal basis when applicable: Search fees is Rs. 300 as per the fees schedule prescribed under section 78 of the Registration Act 1908

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Procedure 2 Ensure that property is clear of all local tax dues

Cost

Cost last year: No charge

Cost update: No charge

Time

Time last year: 7 days (simultaneous with procedures 1 and 3)

Time update: 0.5 days (procedure is completely online)

Online procedure

Can it be completed online? No If yes, since when?

Website:

Update: Yes Update: 2016

Link update: http://portal.mcgm.gov.in/irj/portal/anonymous?NavigationTarget=navurl://16752e124c9b8ed0cd57e504788888b8

Agency

Agency last year: Local authorities

Agency update: Municipal Corporation of Greater Mumbai

Procedure details:

Details: Non-payment of local property tax can result in the property being attached and sold by the local body. The last local tax bill will show the previous dues if any and the receipt of payment will indicate the date on which the payment was made. The receipt is issued by the local body upon receipt of payment.

Your comments: Any charges/tax dues on property can now be checked online at http://portal.mcgm.gov.in/irj/portal/anonymous?NavigationTarget=navurl://16752e124c9b8ed0cd57e504788888b8

If you made changes to last year’s information, what is it due to? Reform

Please explain the change(s) and provide the legal basis when applicable: Any charges/tax dues on property can now be checked online at http://portal.mcgm.gov.in/irj/portal/anonymous?NavigationTarget=navurl://16752e124c9b8ed0cd57e504788888b8

Procedure 3 Conduct charges search at the Registrar of Companies

Cost

Cost last year: INR 100

Cost update: No change

Time

Time last year: 1-2 days (simultaneous with procedures 1 and 2)

Time update: 0.5 days (procedure is completely online)

Online procedure Can it be completed online? Yes

If yes, since when? 2010

Website: http://www.mca.gov.in/mcafoportal/showIndexOfCharges.do

Update: -Click to Select- Update: Link update:

Agency

Agency last year: Registrar of Companies

Agency update:

Procedure details:

Details: In case of companies formed under the provisions of Companies Act, 2013 and/or under the provisions of Companies Act, 1956 as also in case of any Limited Liability Partnership firms, all charges, modification of charges and satisfaction of charges are required to be compulsorily registered with the Registrar of Companies. Searches on the website of the Ministry of Company Affairs can be taken to peruse the charges created.

Your comments:

If you made changes to last year’s information, what is it due to? Reform

Please explain the change(s) and provide the legal basis when applicable: The search can be conducted online and as per World Bank's methodology the time required for conducting charges seacrch on a complete online system is 0.5 days.

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Procedure 4 Prepare the final sale deed with the purchaser’s lawyer

Cost

Cost last year: About 1% of the property value (About INR 45,000)

Cost update: 0

Time

Time last year: 7 days

Time update: 0.5 days (procedure is completely online)

Online procedure

Can it be completed online? No If yes, since when?

Website:

Update: Yes Update: 2016

Link update: http://igrmaharashtra.gov.in/SB_DOWNLOADS/DOWNLOADS_DraftDoc.aspx

Agency

Agency last year: Lawyer

Agency update:

Procedure details:

Details: The lawyer prepares the final sale deed and then engrosses the document on green paper leaving the date and place blank. This document is then submitted for stamping. The fee for the lawyer varies from transaction to transaction.

Your comments: No visit to lawyer is required since model sale deed is available online. Also the cost accounted in last year's procedure is the fee charged by property agents and does not form part of legal cost, and as per World Bank's methodology only legal costs are captured in the evaluation. Hence the cost needs to be done away with.

If you made changes to last year’s information, what is it due to? Reform

Please explain the change(s) and provide the legal basis when applicable: No visit to lawyer is required since model sale deed is available online. Also the cost accounted in last year's procedure is the fee charged by property agents and does not form part of legal cost, and as per World Bank's methodology only legal costs are captured in the evaluation. Hence the cost needs to be done away with.

Procedure 5 Pay Stamp Duty on the final Sale Deed through franking at the designated bank.

Cost

Cost last year: 5% of property value

Cost update: No change

Time

Time last year: Less than a day (online procedure)

Time update: No change

Online procedure Can it be completed online? Yes

If yes, since when? 2013

Website: www.gras.mahakosh.gov.in

Update: -Click to Select- Update: Link update:

Agency

Agency last year: Designated and authorised Banks and Government Revenue Accounting Department for online payment

Agency update:

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Procedure details:

Details: Since December 2013 stamp duty and registration fees through electronic secured bank treasury receipt (eSBTR)—an online payment service available round-the-clock has been implemented in Mumbai and entire Maharashtra.Under this system, a customer can log onto the website of the authorized bank, click the link for payment of stamp duty/registration fees, enter the necessary details and pay the duty through the internet banking account. With the printout as proof of the online payment, the customer can walk into the nominated branches of the bank to get the eSBTR. The eSBTR is a receipt with security features, which has been designed by India Security Press, Nashik. ―Alternatively, there is also a facility to make the data entry online and make the payment in bank branches. The sub-registrar then has to register the documents attached with the receipt. Payment could be made 1) Online- through credit card, debit card, internet banking for online payment mode. For this purpose various banks have also been authorised authorizing their internet banking facility 2) through the process of Simple receipt (receipt printed on A-4 size paper). Payment is made to Banks,stamp vendors and post offices also who issue these receipts. Payments can be made through Cash, Cheque, Bank Draft or through electronic payment 3) ESBTR (Electronic Bank and Treasury Receipt) - Few banks have been authorised to issue ESBTR. Banks accept payment by various modes and then issue these ESBTRs. Payment through GRAS system- details at https://gras.mahakosh.gov.in/igr/

Your comments: Online payment has been made operational at https://gras.mahakosh.gov.in/echallan/

If you made changes to last year’s information, what is it due to? -Click to Select-

Please explain the change(s) and provide the legal basis when applicable:

Procedure 6 Execute final sale deed and submit documents to the local office of the Sub-Registrar of Assurances

Cost

Cost last year: 1% of market value of the property (Maximum INR 30,000) + INR 20 per page of final sale deed for scanning charges (paid in cash)

Cost update: No change

Time

Time last year: 1 day

Time update: No change

Online procedure

Can it be completed online? No If yes, since when?

Website:

Update: Yes Update: Since 2015 Link update: https://efilingigr.maharashtra.gov.in/

Agency

Agency last year: Sub Registrar of Assurances

Agency update:

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Procedure details:

Details: The execution of the sale deed in front of the 2 witnesses is commonly done at the same time and place where the buyer submits documents to the Sub-Registrar. The documents are submitted to the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The authorized signatories of the seller and purchaser are required to be present along with two witnesses. Once the document is registered, a distinct document number is assigned to that document. The record of registration is kept in the office of sub registrar of assurance. The documents are submitted to the Reader of the Sub-Registrar of Assurances for scrutiny. After scrutiny, the Reader indicates the registration fee required, which is 1% of the transaction value or Rs. 30,000/- whichever is less on the document itself. The due registration fee is to be deposited with the cashier against a receipt. After depositing the fees, the documents are presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. Normally, the Seller hands over the peaceful vacant and physical possession of the property to the buyer simultaneous to the deed being presented for registration. Upon payment of the required registration fees and computer service charges in cash, as per the receipt, the document is returned within 30 minutes of getting the receipt. The documentation shall include: (1) Document required to be registered (in duplicate) (2) Two passport-size photographs of the authorized signatories of both parties. (3) Photo identification of each party and witnesses i.e. voters' identity card, passport, identity card issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer. (4) Certified true copies of certificate of incorporation of both seller and purchaser. (5) Copy of the latest property register card (to be obtained from the City Survey Department) to indicate that the property does not belong to the government (6) Copy of the Municipal Tax bill to indicate the year in which the building was constructed (7) Copy of PAN Card of Income Tax of the Seller and the Buyer annexed along with the Sale Deed. The registration fees can be paid e-Challan on GRAS or e-SBTR through the websites of the authorised participatory banks.

Your comments:

If you made changes to last year’s information, what is it due to? -Click to Select-

Please explain the change(s) and provide the legal basis when applicable:

Procedure 7 Apply to the Land & Survey Office for mutation of the tile of the property

Cost

Cost last year: INR 750 (Application fee of INR 100; stamp duty on the Indemnity Bond of INR 500, stamp duty of INR 100 on the Affidavit in the prescribed form and notary fees of INR 50)

Cost update: Rs 150

Time

Time last year: 30 days

Time update: 20 days

Online procedure Can it be completed online? No

If yes, since when?

Website:

Update: -Click to Select- Update: Link update:

Agency

Agency last year: Land & Survey Office

Agency update:

Procedure details:

Details: An application for mutation of the title of the property will have to be made to the City Survey and Land Records office for seeking mutation of the title of the property in the name of the purchaser. The authorised signatory has to submit the duly signed application along with the affidavit, indemnity bond and a notarised copy of the registered Sale Deed. After the assessment of the request for mutation, the City Survey and Land Records office decides the value of the tax on the property and issues a letter of mutation in favour of the purchaser.

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Your comments: The bonafide purchaser has to submit an application for the mutation along with self declared affidavit and certified copy of Index II

If you made changes to last year’s information, what is it due to? Reform

Please explain the change(s) and provide the legal basis when applicable: The bonafide purchaser has to submit an application for the mutation along with self declared affidavit and certified copy of Index II. Abolishment of Affidavit & permitting Self Attestation has reduced the timeline of procedure by 10 days

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3.2 Additional procedures in the process for transferring property Please provide details below on any new or existing procedures that are not included in the list above. In case there is no additional procedure to be added, please proceed to the next section.

Procedure

Name:

Cost:

Time:

Online procedure Can this procedure be done online? -Click to Select-

If Yes, since when? Please provide the link to the website:

Agency:

Procedure details:

If you made changes to last year’s information, what is it due to? -Click to Select-

Please explain the changes and provide the legal basis when applicable:

Please indicate the sequence of this new procedure (for example: between procedures 2 and 3) or describe when it takes place:

Can this procedure take place simultaneously with another procedure? If so, which one(s)?

3.3 Please verify the time required for all procedures to transfer property until it becomes opposable to third parties in Mumbai:

Question Answer

Last year, the overall time to transfer a warehouse between two limited liability companies in Mumbai– including all the procedures required before, during and after registration - was estimated at:

46.5 days

This year, based on your experience and using the case study assumptions explained in Section 1, what is the overall time for a business to purchase a property from another business and to transfer the property title to the buyer's name?

24 days

Based on your experience and the same case study assumptions, what can be the fastest time in practice to transfer a property between two limited liability companies?

18 days

Based on your experience and the same case study assumptions, what can be the slowest time in practice to transfer a property between two limited liability companies?

30 days

If there is a difference in time, what is the main reason behind it? As per Maharashtra Land Revenue Code,

duration of notice period is 15 days and it

requires additional 3 days to register the

deed.

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Code To For mat Page: D o not del ete0.

4. QUALITY OF LAND ADMINISTRATION INDEX This section is dedicated to the Quality of Land Administration Index, which evaluates 4 main areas: the overall reliability of infrastructure; transparency of information; geographic coverage; and land dispute resolution mechanisms in place. When answering the questions below, kindly disregard the case study assumptions (section 1). For your convenience, a summary of the responses provided last year to the same questions is included. Because they represent the responses received from all Doing Business contributors in your economy, they may not match the specific answers that you or colleagues in your firm provided last year. If any of your answers are the result of a reform that came into effect after June 1, 2016 please mention it in the sections for changes comparing to the last year. Furthermore, when answering the questions below kindly indicate the name, reference and date of publication of the relevant law, when applicable. 4.1 RELIABILITY OF INFRASTRUCTURE INDEX 4.1.1 Immovable property registration system

Last Year This Year Comments

a) What is the name of the institution in charge of immovable property registration in Mumbai?

Sub-Registrar office

Sub-Registrar office

b) Is the majority of title/deed records in Mumbai held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents? (A scanned document is an image of a document, kept in electronic format or microfilm, whose content cannot be used in searches and it is not extractable. Fully digital documents are those that have information input into

Computer/Scanned

Computer/Fully digital

The records are available in digital format, searchable on keywords - Year and Document number

https://esearchigr.maharashtra.gov.in/testingesearch/Login

.aspx

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fields, with content that is searchable and extractable).

c) Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions, etc.)?

No Yes Available in eSearch application

(https://esearchigr.maharashtra.gov.in)

4.1.2 Cadastral/Mapping system

Last Year This Year Comments

a) What is the name of the institution in charge of the plans showing legal boundaries in Mumbai (cadastre, parcel index, etc.)

Land Records Department

Land Records Department

b) Is the majority of plans in Mumbai held in a paper format or in a computerized format? If they are computerized, are they scanned documents or fully digital documents?

Paper Paper

c) Is there an electronic database for recording boundaries, checking plans and providing cadastral information (Geographic Information System)?

No No

4.1.3 Interconnection

Last Year This Year Comments

a) Is the information recorded by the immovable property registration agency and the mapping agency kept in a single database, different but linked databases, or separate databases?

Separate databases

Separate databases

b) Do the immovable property registration agency and cadastral/mapping agency use the same identification number for properties?

Yes Yes

This Year If yes, please explain:

Since June 1, 2016, has there been any change in the areas above?

-Click to Select-

4.2 TRANSPARENCY OF INFORMATION INDEX 4.2.1 Immovable property registration system

Last Year This Year Comments

a) Who is able to obtain information on land ownership at the agency in charge of immovable property registration in Mumbai?

Anyone who pays the official fee

Anyone who pays the official fee

b) Is the list of documents that are required to complete any type of property transaction made publicly available?

Yes, online Yes, online

If online, please provide the link: www.igrmaharashtra.gov.in under the heading 'Activities' and sub heading

'Document Registration'

http://www.igrmaharashtra.gov.in/SB_

www.igrmaharashtra.gov.in under

heading 'Activities' and sub heading 'Document

Registration' http://igrmaharash

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ACTIVITES/activites_DocRegistration.

aspx

tra.gov.in/SB_ACTIVITES/activites_DocRegistration.

aspx

c) Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in Mumbai made publicly available?

Yes, online Yes, online

If online, please provide the link: www.igrmaharashtra.gov.in under the

heading 'Publications' and sub heading 'Fee

Structure' http://www.igrmaharashtra.gov.in/SB_PUBLICATION/DATA/Registration%20fee%20table.pdf

www.igrmaharashtra.gov.in under

heading 'Publications' and sub heading 'Fee

Structure' http://igrmaharashtra.gov.in/SB_PUBLICATION/PUBLICATION_FEES

TRUCT.aspx

d) Does the agency in charge of immovable property registration agency commit to deliver a legally binding document that proves property ownership within a specific deadline (service standards- e.g. 5 working days to deliver a new title)?

Yes, online Yes, online

If online, please provide the link: www.igrmaharashtra.gov.in under the heading Citizen's

Charter http://www.igrmaharashtra.gov.in/SB_CITIZENAREA/citizenArea_CC_pdf.as

px

www.igrmaharashtra.gov.in under

heading 'Citizen's Charter

http://igrmaharashtra.gov.in/SB_CITIZENAREA/citizenArea_CC_pdf.asp

x

e) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration through a telephone hotline, a mailing address, e-mail or other means?

No Yes

If yes, please provide the contact information:

A separate mechanism is

available for filing complaints at

[email protected];

a central call center is also

available (020-8888007777, from 7 am to 9pm) for

citizens for logging any

property registration

related grievance. A grivance

management system ( a single window service portal ) has also

been implemented by

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Government of Maharashtra - called "Aaple

Sarkar" portal.

f) Are there official statistics tracking the number of transactions at the immovable property registration agency?

Yes Yes

If yes, are they made available to the public? No Yes

Available at http://igrmaharashtra.gov

.in/pdf/Statistic.pdf

What is the source of these statistics?

Source is department's registration

system (iSarita) and GRAS online payment system of Maharashtra

Govt.

What is the total number of property transfers in Mumbai that took place in 2016?

4.2.2 Cadastral/Mapping system

Last Year This Year Comments

a) Who is able to consult plans in Mumbai? Only intermediaries and interested

parties Only intermediaries and interested parties

b) Is the applicable fee schedule to get access to plans made publicly available?

Yes, on public boards

Yes, on public boards

If online, please provide the link: https://www.bhumiabhilekh.maharashtra.gov.i

n

c) Does the cadastral/mapping agency commit to deliver an updated plan within a specific deadline (service standards- e.g. 5 working days to update the plan)?

No

No

If online, please provide the link:

d) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of cadastral plans through a telephone hotline, a mailing address, e-mail or other means?

No

Yes

If yes, please provide the contact information:

Yes

A separate mechanism is available for filing

complaints at [email protected]; a central call center

is also available (020-8888007777, from 7 am to 9pm) for citizens for logging

any property registration related grievance. A

grivance management system ( a single window service portal ) has also been implemented by

Government of Maharashtra - called "Aaple

Sarkar" portal.

This Year If yes, please explain:

Since June 1, 2016, has there been any Yes A separate mechanism is available for filing

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change in the areas above? complaints at [email protected]; a

central call center is also available (020-8888007777, from 7 am to 9pm) for citizens for

logging any property registration related grievance.

A grievance management system (a single window service portal) has also been implemented by Government of Maharashtra - called "Aaple

Sarkar" portal.

4.3 GEOGRAPHIC COVERAGE INDEX 4.3.1 Immovable property registration system

Last Year This Year

If not, what percentage of

land is registered?

What are the main reasons for the registry

not being complete?

a) Is every privately held land plot in Mumbai formally registered at the immovable property registry?

No Yes

b) Is every privately held land plot in the economy (India) formally registered at the immovable property registry?

No Yes

4.3.2 Cadastral/mapping system

Last Year This Year If not, what percentage of land mass is

mapped?

What are the main reasons

for the mapping not being complete?

a) Is every privately held land plot in Mumbai mapped?

No Yes

b) Is every privately held land plot in the economy (India) mapped?

No Yes

This Year If yes, please explain:

Since June 1, 2016, has there been any change in the areas above?

Yes

Section 17 of the Registration Act clearly provides that any document (other than testamentary instruments) which purports or operates to create, declare, assign, limit or extinguish whether in present or in future "any right, title or interest" whether vested or contingent of the value of Rs. 100 and upwards to or in immovable

property. Section 49 of the said Act provides that no document

required by Section 17 to be registered shall, affect any immovable property comprised therein or received as evidence of any transaction affected such property,

unless it has been registered. (http://dolr.nic.in/dolr/RegistrationAct%281908%29.asp)

Case Law: Suraj Lamp and Industries (P) Ltd. v/s State

of Haryana (2012) 340 ITR 1 (SC)

All land parcels in mumbai are surveyed under maharashtra land revenue code u/s 122 and 126 and separate maps and RoR is prepared and kept in the

respective city survey office

4.4 LAND DISPUTES RESOLUTION INDEX 4.4.1 Legal background

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Last Year This Year Comments

a) Does the law require that all property sale transactions be registered at the land registry to make them opposable to third parties?

Yes Yes

If yes, please specify the legal basis: Section 17 of the Indian Registration Act, 1908

Section 17 of the Registration Act,

1908

b) Is the system of immovable property registration subject to a guarantee?

No No

If yes, what is the type of guarantee? -Click to Select-

Please specify the legal basis:

c) Is there any compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the land registry?

No No

If yes, what kind of compensation is provided in this case?

Please specify the legal basis:

d) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g. checking of contracts compliance with law requirements)?

Yes Yes

If yes, who is held responsible for verifying the contract compliance?

Lawyer; Interested Parties.

Registrar Notary Lawyer Interested parties No one Other

Please specify the legal basis:

Indian Contract Act, 1872 & Transfer of

Property Act,1882 as amended thereafter

Indian Contract Act, 1872 and Transfer of Property Act, 1882 as amended thereafter

e) Does the legal system require a verification of the identities who are parties to a property transaction?

Yes Yes

If yes, who is held responsible for verifying the identity of the parties to a property transfer?

Registrar.

Registrar Notary Lawyer Interested parties No one Other

Please specify the legal basis: Section 34 (3) (b) of the Indian Registration Act,

1908

Section 34(3) (b) of the Indian

Registration Act, 1908

f) Is there a national database to verify the accuracy of identity documents?

No No

4.4.2 Formal land dispute resolution mechanisms

Last Year This Year Comments

a) In case of a standard land dispute between two local businesses over tenure rights of a property worth INR 5,114,479 located in Mumbai, what is the court in charge of the case in first instance?

City Civil Court

Revenue Courts

As discussed in Washington DC with

Doing Business team, the disputes

related to boundaries are first

taken up by the

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revenue courts.

How long does it take on average to obtain a decision from the first instance court for such a case (without appeal)?

More than 3 years

Less than a year

Maharashtra Act No. XI of 2016

mandated the adjudication of the

Cases/ disputes with regards to land

within one year

b) Are there any statistics on the number of land disputes in the first instance?

No

Yes

―e-DISNIC software― (Revenue Courts)

for online availability of land dispute information has been rolled out

If yes, what is the number of land disputes in 2016 and/or the land dispute rate (i.e. the percentage of land disputes out of the total number of disputes in the first instance)?

What is the source of these statistics?

This Year If yes, please explain:

Since June 1, 2016, has there been any change in the areas above?

Yes As discussed in Washington with Doing Business team, the disputes related to boundaries are first taken up by the revenue courts. Thus they should be considered as the court incharge in first instance.

Maharashtra Act No. XI of 2016 mandated the adjudication of the Cases/ disputes with regards to land within one year ―e-DISNIC software― (Revenue Courts) for online availability of land dispute information has been rolled out

5. Equal access to property rights index When assessing if the law recognizes equal ownership rights over the property, please consider the capacity to own, use and administer it. Assume the individuals are married and under the default marital property regime or the most commonly used system.

Last Year This Year Comments

a) Do unmarried men and unmarried women have equal ownership rights to property?

Yes Yes

Please specify the legal basis:

Hindu Succession Act and Article 14 of the

Constitution of India

Hindu Succession Act and Article 14 of the

Constitution of India

b) Do married men and married women have equal ownership rights to property?

Yes Yes

Please specify the legal basis:

Hindu Succession Act and Article 14 of the

Constitution of India

Hindu Succession Act and Article 14 of the

Constitution of India

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6. RESEARCH QUESTIONS This section focuses on research topics related to the Registering Property indicator that will be used to promote deeper research in the field of property rights by the Doing Business team. The purpose of land records is to provide interested parties with up to date and authoritative information on all rights, encumbrances, liens, and charges pertaining to a particular piece of land. Failure to synchronize information between different institutions will prevent this, thus reducing the value of records, increasing the transaction cost of land transfers, and creating potential opportunities for insecurity, fraud and potential conflict. When answering the questions below, please disregard the case study assumptions presented in Section 1. 6.1 Land Registry record keeping Response What is the legal basis? Comments

a) Is the registration of mortgages required by law?

Yes Section 17 of the

Registration Act, 1908

In case of mortgage by

way of deposit of title deeds,

if agreement has been executed then it is

compulsorily registrable

as per Section 17 and if there

is no agreement,

the mortgager has to file a

notice of intimation regarding

such mortgage

with the sub registrar under

Section 89B of the

Registration Act

6.1.2 Which of the following encumbrances are recorded in the Land Registry. Can they be accessed by interested parties?

Encumbrances registration

Available to interested

parties

If there is any status change, how many

days does it normally take to update the new information (indicate 0 for

automatic online update)?

Comments

a) Civil disputes that affect a registered property

Yes Yes

As per Section 89A of the Registration Act, registers are

maintained at sub registrar level to record the decrees/orders cases received from courts. The same

information is available on https://esearchigr.maharashtra.gov.in

for public search

b) Mortgages secured against a

Yes Yes 0 In case of mortgage by way of

deposit of title deeds, if agreement

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property has been executed then it is

compulsorily registrable as per Section 17 and if there is no

agreement, the mortgager has to file a notice of intimation regarding such mortgage with the sub registrar using

online filing system: fshttps://efilingigr.maharashtra.gov.in/

The information is available on eSearch:

https://esearchigr.maharashtra.gov.in for public search

c) Public encumbrances (e.g. acquisition notice)

-Click to Select- -Click to Select-

d) Registered long term leases

Yes Yes 0

The information is available on eSearch:

https://esearchigr.maharashtra.gov.in for public search

6.2 Geographic coverage of State Owned Land

Response If not, what percentage of

land is registered/mapped?

a) Is more than 90% of State Owned Land in India formally registered at the immovable property registry?

-Click to Select-

b) Is more than 90% of State Owned Land in India mapped? -Click to Select-

c) Are the boundaries in the maps of the mapping agency updated according to the ownership records?

-Click to Select-

6.3 State Owned Land database

Response Comments

a) Are cadastral maps indicating the location of State Owned Land publicly accessible? -Click to Select-

If online, please provide the link:

b) Are cadastral records used by local governments for tax planning? -Click to Select-

6.4 Private sector use of State Owned Land

Response What is the legal basis? Comments

a) If alienable State Owned Land is transferred for private use, does it have to be awarded through a public tender?

-Click to Select-

b) Are contractual obligations included in State Owned Land transfer for private use made public?

-Click to Select-

c) Are contractual obligations of those receiving public land for private use monitored through a third party evaluation?

-Click to Select-

6.5 Public use of private land This section measures the due process in place to compensate parties affected by compulsory land acquisition by the government for the provision of public goods or the public interest as defined by country level policies and laws. Response What is the legal basis? Comments

a) Can privately held land be taken by the government before compensation is paid in full?

-Click to Select-

Thank you very much for completing the Registering Property questionnaire!

We sincerely appreciate your contribution to the Doing Business project. The results will appear in Doing Business 2018 and on our website: www.doingbusiness.org.

Your work will be gratefully acknowledged in both, if you wish.