Land Title & Real Estate Due Diligence Evaluator

1. The Supreme Court Doctrine: Mutation Does Not Confer Title

In property conveyancing, buyers frequently fall into the legal trap of relying solely on a Patwari's revenue extract (Jamabandi in Haryana/Punjab, Khatauni in UP, or Intikhab in Delhi). The Supreme Court of India in Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co. [2019] and Sawarni v. Inder Kaur [1996] authoritatively held that mutation of property in revenue records neither creates nor extinguishes title, nor does it have any presumptive value on title. It is recorded purely for the purpose of collecting land revenue by the State. Legal title vests solely through registered conveyance deeds under Section 54 of the Transfer of Property Act, 1882.

2. The 30-Year SRO Search & CERSAI Charge Verification

Under Section 79 of the Bharatiya Sakshya Adhiniyam, 2023 (ancient document presumption) and Article 65 of the Limitation Act, 1963, a title due diligence search must span at least 30 continuous years. A physical inspection of original parent deeds is non-negotiable because equitable mortgages under Section 58(f) of TPA are created by simple deposit of title deeds without mandatory registration in certain jurisdictions. Conducting an independent online search on the CERSAI portal (Central Registry under SARFAESI Act, 2002) is mandatory to verify that the owner has not pledged the title deeds with any bank or financial institution.

3. Delhi NCR State Agrarian Codes & Urbanization Doctrines

In the NCT of Delhi, agricultural holdings are governed by the Delhi Land Reforms Act, 1954 (DLRA). Section 81 provides for summary ejectment and vesting of land in the Gaon Sabha if agricultural land is put to non-agricultural use without statutory sanction. However, in the landmark decision Mohinder Singh (Dead) Thr LRs v. Narain Singh [2023], the Supreme Court ruled that once a rural village is urbanized under Section 507(a) of the Delhi Municipal Corporation Act, 1957, the DLRA ceases to apply in its entirety, and the land is governed solely by the Master Plan for Delhi. In Haryana, Change of Land Use (CLU) permission from DTCP is mandatory under the 1975 Act. In Uttar Pradesh, Section 80 declaration under the UP Revenue Code, 2006 is essential to convert agricultural land before development.

4. RERA Section 4(2)(l)(D) 70% Escrow Account & CA Form 3 Certification

For projects exceeding 500 square meters or more than 8 apartments, Section 3 of RERA mandates prior registration before advertising or booking. Section 4(2)(l)(D) mandates that 70% of all monies collected from buyers must be deposited into a dedicated scheduled bank escrow account. Withdrawals are permitted exclusively in proportion to the percentage of physical construction completed, verified through concurrent certifications from an Architect (Form 1), an Engineer (Form 2), and a practicing Chartered Accountant (Form 3).

5. FEMA NDI Rules, 2019: Absolute Ban on NRI Agricultural Land Purchases

Under Rule 24 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are strictly prohibited from purchasing any agricultural land, farm house, or plantation property in India. Any such conveyance is illegal under FEMA and cannot be regularized, risking statutory confiscation by the Enforcement Directorate. NRIs may only acquire commercial or residential property through normal inward banking channels.