Both of our parents have passed away. Our parental residence is in Salt Lake, Kolkata and the property is leased to my father's name for 999 years by the Salt Lake Authority under West Bengal State Government. We are 3 siblings and two of us would like to live there and therefore, have the property's lease transferred to our names. This is our proposal - 1) We gift our youngest sister INR 24 Lacs; 2) She will give us a legal document relinquishing her right to the property and POA to sign all paperworks on her behalf; 3) We then apply for the mutation of the property to my name and my other sister's name and submit the document mentioned in (2); 4) We create a separate agreement between the three of us that - a) she will be personally present if for some reason the POA is not admitted and her personal presence is required by the authority and b) she will return the money if for some reason beyond our control, the mutation is not approved after making all corrective actions. This agreement is between ourselves and not to be submitted for mutation. Will this work? What are the pitfalls?
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1. Make a mutual deed of partition wherein you can mention the division of property as per terms you wish.
2. In the same deed the receipt of 24L by your sister can be mentioned whereby she will release her share.
3. Get the partition deed registered from RA, Calcutta.
4. If it is done there is no need for separate execution of POA.
5. This is ore smooth a procedure than what you have proposed.
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This arrangement should work if all the parties act with good intention. Your sister is free to relinquish the leasehold rights, which she inherited on the demise of her father, through a relinquishment deed in favour of other heirs. After the execution of relinquishment deed the other heirs can divide the property through family settlement or partition deed in the manner they desire and then apply for mutation. If she does not return the money the heirs will have to file a lawsuit for recovery against her.
1) get the property mutated in favour of 3 legal heirs
2) subsequently your sister can execute relinquishment deed relinquishing her interest or sale deed for her share in property
3) simultaneously you transfer Rs 24 lakhs in her account
4)I am not comfortable with idea of paying Rs 24 lakhs now
5) your sister can take the plea that she was forced to relinquish her share or she can revoke the POA
lease hold property cannot be gifted unless its tenure is changed to freehold. gift deed is void. it can be devolved through inheritance or survivorship. prepare a varasat certificate and get mutation on that. make a gift deed separately and get from her a relinquishment deed towards that property.
1. The lease of the Salt Lake properties are now being allowed to be transferred or sub-leased provided an amount is paid to the Govt.,
2. You can take that route for transferring the property in your names,
3. The modus operandi developed by you in completing the deal amongst your siblings is legally sufficient to protect your interest.
Since the agreement is drafted and kept within yourselves, it may not be enforceable.
This agreement can be made in such a way that it works.
Once she has relinquished her rights in the property she has no hold over it after the said deed has been duly executed and registered, therefore a separate POA is not required for enforcing it.
So there is no question of mutation problem in this regard Therefore the proposed agreement itself may not be necessary.
